& cplSiteName &

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! 
From The Founder
The independent evaluation of Nokia's key virtual network functions (VNFs) was a defining moment for the Finnish giant.
Flash Poll
Live Streaming Video
Charting the CSP’s Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it’s going from two industry veterans.
LRTV Interviews
Getting Somewhere With TV Everywhere

5|31|16   |   7:08   |   (0) comments


Comcast's Vito Forlenza describes the progress his company is making with TV Everywhere and the challenges that remain.
LRTV Custom TV
Cisco's Innovations in Cable

5|26|16   |   03:18   |   (0) comments


Marc Aldrich from Cisco discusses the latest in security, the evolution and momentum for CCAP and what the industry will be seeing next from Cisco.
LRTV Documentaries
Leading Lights 2016 Highlights

5|25|16   |   02:26   |   (1) comment


Some of the high points from this year's Leading Lights awards dinner at the Hotel Ella in Austin, Texas.
LRTV Documentaries
Light Reading Hall of Fame 2016

5|23|16   |   05:43   |   (0) comments


Find out who has been welcomed into Light Reading's Hall of Fame this year.
LRTV Custom TV
ZTE TM Forum Highlights

5|23|16   |     |   (0) comments


ZTE showcased its new ICT solutions at TM Forum in Nice.
LRTV Interviews
Gamma's MD on the Emergence of UC2

5|20|16   |     |   (0) comments


Gamma Communications Managing Director David Macfarlane believes the unified communications (UC) market has reached a tipping point.
LRTV Custom TV
The Ultimate 5-Minute Guide to Digital Customer Engagement

5|20|16   |     |   (0) comments


In this short video, you will hear all about how Digital Customer Engagement is the key to meeting customer expectations, keeping them happy, and maximizing revenue. VP Product & Marketing at Pontis, Ofer Razon, breaks down for ...
LRTV Custom TV
NFV in 2016: Part 1 – NFV Use Cases Get Real

5|19|16   |   05:57   |   (0) comments


Consensus is building around the key use cases for NFV, including managed IP services at the network edge and on customer premises, which can generate new revenues from enterprises/SMBs and consumers; Evolved Packet Core to support LTE migration; and adjacent technologies, such as TAS and IMS, to support VoLTE and next-generation charging and policy control ...
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 3

5|19|16   |     |   (0) comments


Steve Vogelsang discusses the challenges of operational transformation and how Nokia helps its customers. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
LRTV Interviews
Level 3: Why UC Is In Demand

5|17|16   |   04:12   |   (1) comment


Andrew Edison, Level 3's senior VP of sales, EMEA region, talks about the drivers of growth in the unified communications services market.
LRTV Custom TV
ARM's OPNFV Action

5|17|16   |     |   (0) comments


At the ARM booth at MWC 2016, Joe Kidder and Bob Monkman speak to Light Reading about OPNFV and their upcoming action.
LRTV Custom TV
Nokia's Steve Vogelsang on NFV – Part 2

5|16|16   |     |   (0) comments


Steve Vogelsang gives advice to service providers on how to move to NFV. Join Steve at the Big Communications Event in Austin the morning of May 24, on his keynote and optical networking panel.
Upcoming Live Events
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
DT: Telcos Must Escape Vendor Prison
Iain Morris, News Editor, 5/24/2016
AT&T to Start 5G 'Friendly' Trial by 2016 End
Dan Jones, Mobile Editor, 5/24/2016
Cisco's Patel Hails 'Microculture' Successes
Iain Morris, News Editor, 5/26/2016
Cable Is Eyeing Its Retail Options
Mari Silbey, Senior Editor, Cable/Video, 5/25/2016
AT&T's Margaret Chiosi Retires
Ray Le Maistre, Editor-in-chief, 5/25/2016
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
Please Pass the Waterproof Phone Click Here
Walruses: more tech-savvy than you might think.
Live Digital Audio

Our world has evolved through innovation from the Industrial Revolution of the 1740s to the information age, and it is now entering the Fourth Industrial Revolution, driven by technology. Technology is driving a paradigm shift in the way digital solutions deliver a connected world, changing the way we live, communicate and provide solutions. It can have a powerful impact on how we tackle some of the world’s most pressing problems. In this radio show, Caroline Dowling, President of Communications Infrastructure & Enterprise Computing at Flex, will join Women in Comms Director Sarah Thomas to discuss the impact technology has on society and how it can be a game-changer across the globe; improving lives and creating a smarter world. Dowling, a Cork, Ireland, native and graduate of Harvard Business School's Advanced Management Program, will also discuss her experience managing an international team focused on innovation in an age of high-speed change.