& cplSiteName &

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        ADD A COMMENT
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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. 
Mitch Wagner
0%
100%
Mitch Wagner,
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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.
Sarah Thomas
50%
50%
Sarah Thomas,
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
Like Apple, Facebook, and Google, Sony is examining the possibilities of 5G too.
The iPhone maker is looking for a wireless engineer who can develop hardware using emerging technologies.
Welcome one and all to our new 5G site!
Koontech intros the fire- and bomb-proof phone.
AT&T is reported to be using Huawei's equipment in Mexico.
From The Founder
Download our complete guide to de-risking NFV deployment in 2016, including:
  • An eight-step strategy to deploying NFV safely, based on input from the companies that have already started virtualizing their production networks.
  • Interviews with leading executives at Colt, AT&T, Deutsche Telekom, Cisco, Nokia, ZTE, Ericsson and Heavy Reading.
  • Flash Poll
    Live Streaming Video
    Prepping for the Future: Upskill U Explained
    During this short kick-off video, Doug Webster, Vice President of Service Provider Marketing, Cisco, and Light Reading’s CEO & Founder Steve Saunders give an overview of Upskill U.
    Telecom Innovators Video Showcase
    Atrinet's NetACE – Migration to NFV & SDN With NetOps-Driven LSO

    5|4|16   |     |   (0) comments


    At Atrinet's headquarters, Ray Le Maistre sits down with Roy Silon to get an in-depth look into the company's focus and the secret recipe for their success.
    LRTV Huawei Video Resource Center
    Amsterdam ArenA, Powered by Huawei

    5|4|16   |     |   (0) comments


    Huawei's ICT solutions power the state-of-the-art Amsterdam ArenA, turning it into a smart stadium.
    LRTV Interviews
    Testing When There's No 'There' There

    5|4|16   |     |   (0) comments


    The benefits of SDN/NFV are well known, but the transition comes with some challenges, prominent among them is: how do you test a network that has been abstracted and has the potential to be endlessly reconfigurable? Light Reading was at NFV World Congress in Santa Clara, Calif., where we bumped into Mats Nordlund, CEO and co-founder of Netrounds, a Swedish ...
    LRTV Interviews
    Ditching the Slash & the Orchestration Wars

    5|3|16   |     |   (2) comments


    SDN and NFV have been inextricably bound with each other for so long that on a conceptual level, smooshing them together into one catch-all phrase – SDNFV – is now justifiable, according to Dan Pitt, executive director of the Open Networking Foundation (ONF). Light Reading spoke to Pitt at the NFV World Congress, where he explained that the next ...
    LRTV Custom TV
    ZTE TV Connect Highlights

    5|3|16   |     |   (0) comments


    ZTE gives us a tour of its booth and new products at TV Connect in London.
    LRTV Custom TV
    Deluxe's Unified Delivery Solution

    5|3|16   |     |   (0) comments


    Join Alan Breznick of Light Reading and visit the Deluxe booth at NAB! Here you'll find Deluxe's Unified Delivery Solution, OTT video, virtual reality, HDR, 4K and much more!
    LRTV Interviews
    Verizon Puts Gray Boxes in the Shade

    5|2|16   |   04:33   |   (1) comment


    When it comes to the white box trend, "gray" boxes, which have a slight proprietary twist, don't give service providers and end users the advantages they're seeking, according to Verizon's Vice President of Product and New Business Innovation Shawn Hakl.
    LRTV Custom TV
    Dealing With a Disrupted Video Market

    5|2|16   |     |   (0) comments


    Ericsson's Simon Frost discusses how traditional pay-TV providers can cope with the big changes wrought by the rise of OTT video and IP technology.
    LRTV Custom TV
    The VNF Responsibility of Red Hat

    5|2|16   |     |   (0) comments


    At MWC, Caroline Chappell of Heavy Reading visits the Red Hat booth and sits down with Chris Wright to talk about the responsibility the VNF needs to take on in order to ensure the operators get the carrier-grade performance they expect for their network.
    LRTV Interviews
    AT&T Expert on the Key Pillars of UC

    4|29|16   |   03:58   |   (0) comments


    Vishy Gopalakrishnan, AVP of product marketing at AT&T, talks about the three developments that are making unified communications and collaboration secure and reliable for enterprise users.
    LRTV Documentaries
    LRTV Report: Mobile Core Innovation

    4|28|16   |   25:32   |   (0) comments


    Hear from multiple industry experts from Deutsche Telekom, SK Telecom, Heavy Reading, Huawei, Cisco, Ericsson, Nokia, NEC and many more about developments in the mobile core as operators virtualize their IMS and evolved packet core systems and prepare for a 5G world.
    LRTV Huawei Video Resource Center
    NFV World Congress Highlight

    4|26|16   |     |   (0) comments


    The highlight of the NFV World Congress contains exciting telecom news. Join us for an inside look at Huawei's ICT 2020 plan and its latest collaboration with industry leaders.
    Upcoming Live Events
    May 23, 2016, Austin, TX
    May 23, 2016, Austin Convention Center
    May 24-25, 2016, Austin Convention Center, Austin, TX
    September 13-14, 2016, The Curtis Hotel, Denver, CO
    December 6-8, 2016,
    June 16-18, 2017, Austin Convention Center, Austin, TX
    All Upcoming Live Events
    Infographics
    A new survey conducted by Heavy Reading and TM Forum shows that CSPs around the world see the move to digital operations as a necessary part of their overall virtualization strategies.
    Hot Topics
    Ultra-Broadband Summit, Hong Kong
    Iain Morris, News Editor, 4/27/2016
    Amazon AWS Reports $2.6B Quarterly Revenue, Up a Colossal 64%
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/28/2016
    WiCipedia: Woman Cards & Bitch Switches
    Sarah Thomas, Director, Women in Comms, 4/29/2016
    Sprint CEO: Our Spectrum Is for 5G
    Dan Jones, Mobile Editor, 5/3/2016
    Amazon & Other 'Big 4' Cloud Providers Crushing Competitors
    Mitch Wagner, West Coast Bureau Chief, Light Reading, 4/29/2016
    Like Us on Facebook
    Twitter Feed
    BETWEEN THE CEOs - Executive Interviews
    In this latest installment of the CEO Chat series, Craig Labovitz, co-founder and CEO of Deepfield, sits down with Light Reading's Steve Saunders in Light Reading's New York City office to discuss how Deepfield fits in with the big data trend and more.
    Grant van Rooyen, president and CEO of Cologix, sits down with Steve Saunders, founder and CEO of Light Reading, in the vendor's New Jersey facility to offer an inside look at the company's success story and discuss the importance of security in the telecom industry.
    Animals with Phones
    Sloth Mail Click Here
    Sloth mail -- somehow even slower than snail mail.
    Live Digital Audio

    Of all the tech companies in the Valley, Intel has made the most aggressive commitment to building a diverse and inclusive workplace culture. It's doing so by taking concrete, measurable steps, making a large financial investment and through a commitment to complete transparency about its progress. In this radio show, WiC Director Sarah Thomas will be joined by Shlomit Weiss, Intel's Vice President, Data Center Group, and General Manager of Networking Engineering, who will share with us why Intel is tackling this huge challenge, how and to what effect. She will also discuss her unique experiences leading development of Client SOC development in the past and today leading development of all of the chipmaker's silicon hardware for networking IPs and discrete devices and managing a team of 600 engineers across Israel, Europe and the US.