Light Reading

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.
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. 
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.
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
Happn takes location-based dating to a whole new level -- maybe a level too far.
Tech IPOs could suffer if stock market losses prove to be more than just jitters.
Cellphones and rollercoasters don't mix.
One from our WTF department! Marshall -- the amp maker -- intros an Android smartphone.
Consumers have no way of knowing if the aftermarket Sprint phone they're buying will work on the operator's network -- and that's burning Sprint's MVNOs.
From The Founder
Against the odds, Huawei is growing its telecoms networking equipment business in the US -- that should be ringing some alarm bells for domestic vendors.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
Between the CEOs
CEO Chat With Jeff Miller, ActiveVideo

8|28|15   |   19:05   |   (0) comments


Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
LRTV Huawei Video Resource Center
Vodafone: Mobile Money Is About Customer Trust

8|27|15   |   06.36   |   (0) comments


Light Reading spoke with Vodafone's Ian Ravenscroft about the unique responsibilities and opportunities facing operators handling customers' financial transactions over the network.
Telecom Innovators Video Showcase
Palo Alto Networks on Expanding in the Carrier/Service Provider Market

8|26|15   |   07:54   |   (0) comments


Alfred Lee from Palo Alto Networks tells Steve Saunders about their new chassis-based system, the PA-7080, and how it can benefit service providers compared to legacy firewalls.
LRTV Custom TV
Global Services Forum Preview

8|25|15   |   02:36   |   (0) comments


Light Reading's CEO and Founder Steve Saunders talks about Huawei's upcoming Global Services Forum with the help of Heavy Reading's Patrick Donegan and Teresa Mastrangelo.
Telecom Innovators Video Showcase
Infoblox on DNS Threat Index

8|19|15   |   04:39   |   (0) comments


Dilip Pillaipakam from Infoblox talks to Steve Saunders about his company's core network services.
Between the CEOs
CEO Chat With Ihab Tarazi, Equinix

8|14|15   |   20:18   |   (1) comment


Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about the dramatic changes in the data center, cloud and interconnect markets and discusses the impact of SDN and NFV in the coming years.
Telecom Innovators Video Showcase
The Netformx Ecosystem

8|14|15   |   09:39   |   (1) comment


Ittai Bareket, CEO of Netformx, talks with Steve Saunders about the Netformx Ecosystem, which employs cutting-edge prescriptive analytics to help solution providers maximize profits.
Telecom Innovators Video Showcase
Versa Networks on Leveraging VNFs

8|12|15   |   07:37   |   (0) comments


Kumar Mehta, founder and CEO of stealth mode startup Versa Networks, talks with Steve Saunders about how providers can best leverage virtualized network functions (VNFs).
LRTV Custom TV
Transforming the Network Through OPNFV

8|5|15   |   7:09   |   (0) comments


Sandra Rivera, VP Data Center Group; GM Network Platforms Group, Intel Corporation, on OPNFV Arno and how the industry is coming together to accelerate the deployment of NFV and transform the network.
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Cisco's cloud and virtualization portfolio can increase business agility and innovation by building a more flexible network architecture.
Hot Topics
Verizon Hums a Driving Tune
Sarah Thomas, Editorial Operations Director, 8/26/2015
Gogo Approved to Speed Up In-Flight WiFi
Sarah Thomas, Editorial Operations Director, 8/24/2015
Could Market Volatility Hurt Tech IPOs?
Dan Jones, Mobile Editor, 8/24/2015
Sprint's Claure: '3 to 5 Years' to Turnaround
Dan Jones, Mobile Editor, 8/25/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Jeff Miller, President and CEO of ActiveVideo, talks to Light Reading founder and CEO Steve Saunders about the impact of virtualization on the TV and video distribution market.
Equinix CTO Ihab Tarazi talks to Light Reading founder and CEO Steve Saunders about data center, cloud and the impact of virtualization in the coming years.
Cats with Phones
Cats Are a Smartphone's Best Friend Click Here
Whoever said cats didn't live to please their humans?