Light Reading
It appears that US regulators may not be too wild about Sprint and T-Mobile combining into a massive mobile power house.

Tough Road Ahead for Sprint/T-Mobile?

Dan Jones
2/3/2014
50%
50%

Ambitious SoftBank CEO Masayoshi Son could face a tough road ahead in convincing US regulators that a merger between Sprint and T-Mobile is in the best interest of American consumers.

The Wall Street Journal reports that the SoftBank Mobile Corp. CEO is due to meet with Federal Communications Commission (FCC) chairman Tom Wheeler about the prospects of a merger. A wide range of topics is expected to be covered at the meeting. (See SoftBank's Son Keeps Sprint on Short Leash.)

The latest meeting comes after the WSJ reported that Son and Sprint Corp. (NYSE: S) CEO Dan Hesse were met with skepticism about the merger by officials at the Antitrust Division of the U.S. Department of Justice . (See Euronews: DT, SoftBank Back in Sprint Merger Talks.)

Son and other supporters of the merger say that the combination of Sprint and T-Mobile will allow the operators to scale to compete with AT&T Inc. (NYSE: T) and Verizon Wireless . (See Is SoftBank Ready to Reunite With Legere?.)

The flip side being argued by unions and others is that creating three massive wireless carriers in the US could further restrict consumer choice.

What's your take? Let us know on the message board below.

— Dan Jones, Mobile Editor, Light Reading

(17)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Page 1 / 2   >   >>
DanJones
50%
50%
DanJones,
User Rank: Blogger
2/5/2014 | 5:25:46 PM
Re: Less is more ?
I can't imagine any of the CTOs of either company looking forward to tying that mess of frequencies together into a cohesive whole.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/5/2014 | 5:06:43 PM
Re: Less is more ?
T-Mobile has shown how a smaller carrier can innovate despites its size disadvantage. Sprint could certainly do the same, it just hasn't been able to yet because of all the network issues it has to focus on first.
DanJones
50%
50%
DanJones,
User Rank: Blogger
2/5/2014 | 1:34:02 PM
Re: Not sure what could save Sprint from itself...
It would definitely be a huge challenge.
Pete_S4
100%
0%
Pete_S4,
User Rank: Light Beer
2/5/2014 | 1:30:35 PM
Not sure what could save Sprint from itself...
I've been a customer of, supplier to, and competitor of Sprint over the last 15+ years.  I've worked with its demoralized employees professionally.  I've watched it fail to integrate companies it bought, run its network on the ragged edge, throw financial / technical Hail Mary's, and fail to compete on anything other than price / "unlimited" data plans.  

T-Mobile at least seems to be using its limited resources with some efficiency and trying to bring some innovation to the industry's pricing model.  Though I'm not quite sure how different a two year payment plan with service is all that different than a two year contact....

Maybe Softbank will be the outside influence that finally saves Sprint from itself, but I fear for T-Mobile if they are ever assimilated by Sprint.  It might sound good on paper, but there'd be 4 organizations and corporate cultures between T-Mobile, Sprint, Softbank, and Clearwire to integrate.  Not mention legacy GSM, UMTS, CDMA, and WiMax customers/networks to support while moving to an LTE future.  These rarely go as planned.

 
balsam
50%
50%
balsam,
User Rank: Light Beer
2/4/2014 | 4:59:49 PM
Less is more ?
Will scale helps combined Sprint/TMobile entity to fight of AT&T, Verizon, what industry needs is to enabling innovation. This can be best achieved at size that T-Mobile and Sprint are today instead of a combined entity.  Sprint & TMobile have opportunities to innovate on technology, business models, how they charge users, their data services, OTT partnerships, to name a few. 
FakeMitchWagner
0%
100%
FakeMitchWagner,
User Rank: Lightning
2/4/2014 | 4:32:43 PM
Re: No way
Sprint's response to this is that is that AT&T and Verizon need a company of similar size to compete with them, and that neither Sprint nor T-Mobile separately are big enough to do the job. 

It's not the crazies thing I've ever heard. (That would be Frank Sinatra singing the Rolling Stones.)
RitchBlasi
50%
50%
RitchBlasi,
User Rank: Light Sabre
2/4/2014 | 2:57:35 PM
Three or Four????
I've always believed that fewer national mobile operators with the assets to deliver what everyone is promising using mobile is better than more.  We all know the growth in use will only continue, as will the need to carry more bandwidth intensive services.  This comes down to a quality issue.  I agree with what folks are saying that three carriers still constitute competition - and then you can add in all the MVNOs selling similar services for lower costs and the consumer will be fine.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/4/2014 | 1:52:51 PM
Re: No way
Interesting ideas, pzernik. I would think merging just backhaul or certain systems would make it more confusing to consumers and from an integration perspective, but might have a better chance of getting approved. Unlikely though, IMO.
SarahReedy
50%
50%
SarahReedy,
User Rank: Blogger
2/4/2014 | 1:51:36 PM
Re: No way
It is pretty funny how much all of them have to, at one time or another, backpedal on things they said before. Although I do think Legere has been careful what he says about Sprint, attacking it, but only for things that T-Mo could change (if given the opportunity).
DanJones
50%
50%
DanJones,
User Rank: Blogger
2/4/2014 | 12:45:21 PM
Re: No way
Still comes down to the question: Would SoftBank  be allowed to buy both though? Really the same result as the two merging.
Page 1 / 2   >   >>
More Blogs from Jonestown
SoftBank appears to be taking tighter control of the still-ailing US operator.
CEO John Legere stresses T-Mobile has options, as Iliad's $15 billion bid for a stake in the operator proves.
Tune in today to get the latest on the newest wireless tech on the block.
Alpental buy gets Google some radio talent now and helps it hedge bets on a 5G future.
Big data analytics for carriers, self-optimizing networks, business small cells and a little app that could save you big money are among the contenders for the best mobile product of 2014 at Leading Lights.
Flash Poll
LRTV Custom TV
Transitioning CE 2.0 Networks Into the SDN & NFV Era With Telco Systems

8|19|14   |   5:19   |   (0) comments


Telco Systems' Ariel Efrati (CEO) and Moshe Shimon (VP of Product Management) discuss virtualization and how the company's new Open Metro Edge solution utilizes the SDN and NFV concepts to accelerate and orchestrate service delivery through its innovative product portfolio and software applications.
LRTV Custom TV
NFV Myths: Is NFV Still Several Years Away?

8|11|14   |   1:13   |   (0) comments


Some say that NFV (network functions virtualization) is still several years away from being implemented on mobile operator networks. This isn't the case. Operators can get started on their paths to NFV now, as this short video from Skyfire shows.
LRTV Custom TV
A New Security Paradigm in SDN/NFV

7|28|14   |   02:54   |   (0) comments


Paul Shaneck, Global Director Network Solutions for Symantec, discusses the evolving virtualized network, explaining how Symantec is leading the security discussion as it relates to SDN and NFV, and helping to ensure the network is protected and compliant.
LRTV Documentaries
Sprint's Network Evolution

7|24|14   |   14:59   |   (0) comments


Sprint's Jay Bluhm gives a keynote speech at the Big Telecom Event (BTE) about Sprint's network and services evolution strategy, including Spark.
LRTV Documentaries
BTE Keynote: The Software-Defined Operator

7|24|14   |   18:43   |   (1) comment


Deutsche Telekom's Axel Clauberg explains the concept of the software-defined operator to the Big Telecom Event (BTE) crowd.
Light Reedy
Numbers Are In: LR's 2014 Salary Survey

7|24|14   |   1:25   |   (7) comments


Our fourth annual Salary Survey paints a picture of who's hiring, firing, earning, and yearning for a change in the telecom industry.
LRTV Custom TV
Driving the Network Transformation

7|23|14   |   4:29   |   (0) comments


Intel's Sandra Rivera discusses network transformation and how Intel technologies, programs, and standards body efforts have helped the industry migration to SDN and NFV.
LRTV Custom TV
Distributed NFV-Based Business Services by RAD

7|18|14   |   5:38   |   (0) comments


With the ETSI-approved Distributed NFV PoC running in the background, RAD's CEO, Dror Bin, talks about why D-NFV makes compelling sense for service providers, and about the dollars and cents RAD is putting behind D-NFV.
LRTV Custom TV
MRV – Accelerating Packet Optical Convergence

7|15|14   |   6:06   |   (0) comments


Giving you network insight to make your network smarter.
LRTV Custom TV
NFV-Enabled Ethernet for Generating New Revenues

7|15|14   |   5:49   |   (0) comments


Cyan's Planet Orchestrate allows service providers and their end-customers to activate software-based capabilities such as firewalls and encryption on top of existing Ethernet services in just minutes.
LRTV Custom TV
Symkloud NVF-Ready Video Transcoding, Big Data

7|9|14   |   3:41   |   (0) comments


Kontron and ISV partner Vantrix demonstrate high-performance video transcoding and data analytic solutions on same 2U standard platform that is ready for SDN and NFV deployments made by mobile, cable and cloud operators.
LRTV Huawei Video Resource Center
The Evolving Role of Hybrid Video for Competitive Success

7|4|14   |   4:09   |   (0) comments


At Huawei's Global Analysts Summit in Shenzhen, China, Steven C. Hawley from TV Strategies speaks to us about the evolving role of hybrid video for competitive success.
Upcoming Live Events!!
September 16, 2014, Santa Clara, CA
September 16, 2014, Santa Clara, CA
September 23, 2014, Denver, CO
October 29, 2014, New York City
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 9-10, 2014, Reykjavik, Iceland
June 9-10, 2015, Chicago, IL
Infographics
Hot Topics
Sprint CEO: Price Cuts First, Best Network Next
Sarah Reedy, Senior Editor, 8/14/2014
IoT Alert: Samsung Snaps Up SmartThings
Mari Silbey, Independent Technology Editor, 8/15/2014
Line-Powered Phone Lines: A Hot Topic Again
Carol Wilson, Editor-at-large, 8/20/2014
Telefónica Proves Brocade Router Performs for NFV
Carol Wilson, Editor-at-large, 8/19/2014
Analyst: Ericsson, Oracle Top Shrinking SDP World
Carol Wilson, Editor-at-large, 8/19/2014
Like Us on Facebook
Twitter Feed