Light Reading

T-Mobile CFO Eyes Dish, Growth Opportunities

Dan Jones
8/13/2014
50%
50%

T-Mobile's CFO sees more "inorganic growth" opportunities ahead for the carrier -- despite the collapse of the Sprint merger plans -- and noted Dish as a possible partner in a chat Wednesday.

T-Mobile US Inc. CFO J. Braxton Carter chatted about what happens next for T-Mobile during his session at the Oppenheimer 17th Annual Technology, Internet & Communications Conference. He was largely positive about the prospect of a closer relationship with US satellite TV provider Dish Network LLC (Nasdaq: DISH) when asked, noting how the companies' assets could align.

"I think he's a brilliant man," Carter said of Dish CEO Charlie Ergen, who has previously pursued similar wireless deals with Sprint Corp. (NYSE: S) and Clearwire LLC (Nasdaq: CLWR) that never made it to completion. (See Dish Throws in the Towel on Sprint Buy and Dish Cedes to Sprint's Clearwire Bid.)

The appeal of the Dish position is that the satellite provider holds 50MHz of spectrum in the US -- 40MHz in the AWS-4 band and 10MHz in the H-Band -- that is very close to the AWS spectrum that T-Mobile has been deploying its 4G LTE network in.

"We could certainly very rapidly deploy on his spectrum," Carter noted.

This would give the pair the opportunity to offer really large LTE channels for faster over-the-air services, possibly doubling up on the 2x20MHz LTE channels that T-Mobile can offer today. Although Carter noted that the operator will move beyond that by itself anyway, without offering much further detail.

Of course, that would mean striking a deal between the two and -- as Carter noted -- Ergen is a "tough negotiator." Still, he opined, it would be very difficult and expensive for Dish to deploy a wireless network on its own, and the provider is running out of time to strike a 4G deal with a partner.

Talking about the recent "out of right field" $15 billion bid from Iliad (Euronext: ILD), Carter described it as "inadequate" and "not interesting." T-Mobile management, he intimated, feels that the carrier is actually being "undervalued" anyway. (See T-Mobile Rejects Initial Iliad Bid – WSJ.)

However, he allowed that the bid "can develop into other people have that interest and other inorganic opportunities." (See Iliad's Bid for T-Mobile: This Ain't No Joke.)


Visit Light Reading's mobile channel for key developments from the wireless networking sector, including 4G, 5G, small cells, security, carrier WiFi, packet core and more.


In the long term, Carter is still clearly looking to a mega-merger to create an operator that can compete with the big two: "The formation of a third-scale national carrier certainly would increase competition," he said.

"The government clearly has a different view," Carter added. (See FCC Could Block Sprint/T-Mobile Spectrum JV.)

The CFO suggested that Sprint must now get the "network piece" together in order to become truly competitive in the marketplace again, noting the ambitions of SoftBank Mobile Corp. CEO Masayoshi Son to make the Sprint network the "best in the world."

"That's going to take years, the amount of densification needed," he stated, stressing that the network performance needs to be there for Sprint to compete.

"Could they get extremely aggressive [on pricing]? Yeah," Carter told his audience. "But what good is that if you just churn [subscribers] right out of the back door?"

"I think its going to take them a while and, in the meantime, we are fully ready for the competition," Carter added.

T-Mobile's CEO John Legere has predicted that the operator will take third place in the US market from Sprint by the end of the year. (See DT Wants Spectrum Favors; Legere Wants Sprint's Slot.)

— Dan Jones, Mobile Editor, Light Reading

(1)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
RitchBlasi
50%
50%
RitchBlasi,
User Rank: Light Sabre
8/14/2014 | 2:21:13 PM
T-Mo n Dish
Hey, anytime you can add more spectrum to your portfolio you go for it.  The lower the frequency the more valuable the spectrum -- and the more you can do with it.  T-Mo wants the spectrum and Dish wants a mobile play.  Sounds like a match made in heaven.

As far as T-Mo moving into third place, you can only drop prices to a certain level before there is an impact in the food chain.  These folks should be driven by margins and profit and if lowering prices takes these to new lows, then I can see how someone could say a company was undervalued.  Not an engineer, and not a financial guru, but I think I understand enough to be dangerous.  Look what happened to the long distance market when it truly commoditized - thank God for wireless! 
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (0) comments


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.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
LRTV Huawei Video Resource Center
Thailand's AIS: Transforming to an FMC Operator

7|17|15   |   4:53   |   (0) comments


Saran Phaloprakarn, Senior VP of Fixed Broadband Business Management of Thailand's AIS, was a keynote speaker at the first Asia-Pacific Ultra Broadband Summit in Bangkok. In this video, he talks to Heavy Reading about transforming into an FMC (FBB+MBB+Content) operator.
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
December 1, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Infographics
Network operators start seeing savings from NFV in the first year, according to a study by Affirmed Networks and ACG.
Hot Topics
AT&T U-verse TV Hits the Skids
Alan Breznick, Cable/Video Practice Leader, 7/24/2015
Robbins Succeeds Chambers as Cisco Changes CEOs
Mitch Wagner, West Coast Bureau Chief, Light Reading, 7/27/2015
RJio to Launch Its Own 4G Devices Brand
Gagandeep Kaur, Contributing Editor, 7/27/2015
Qualcomm Wants FCC to Stay Out of LTE-U Fray
Sarah Thomas, Editorial Operations Director, 7/27/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
Cats with Phones
Distract-a-Cat Click Here
The vibrate function makes for a useful cat distraction.