T-Mobile's parent company, Deutsche Telekom, reportedly poised to buy Sprint?

[skyline247]

David at Tmo News posted this today..... T-mobile To Buy Sprint Rumor, Take 24 | TmoNews - Unofficial T-Mobile Blog - News, Videos, Articles and more .

Now I am not very well versed at what it will take to convert a network wide CDMA operation to GSM, but am I the only one that thinks this would be a bad move on Deutsche Telekom's part? And it could be that it would be the same as the Verizon/Alltel merge, where DT would continue to operate Sprint as a separate entity to T-Mobile. And if that would be the case, I think that would be bad for T-Mobile customers. DT, in my opinion, should invest the money in upgrading equipment and finalizing T-Mo’s 3G rollout, and the future plans to update the entire 3G network from HSPA 7.2 to HSPA 21 by next year. Keeping the current customer base happy should be a priority, at least it seems to me.

Please submit your thoughts, and if I am wrong, please correct. Thanks.

[Dr.Sadistic]

I agree with would be a bad move, just based on the amount of money it would cost to migrate Sprint's system. That would equal a major increase in the price of T-Mo's service to help cover the cost. However, it would make T-Mo a major competitor in the race to cell service superiority.

[dictoresno]

i dont think they would convert the Sprint network over to GSM. its kinda like how Vodafone owns Verizon, but you dont see them trying to convert them to GSM. they would probably keep their CDMA network and run both.

[hieromante]

If they do take over Sprint, how about unlimited mobile-to-mobile between both? That might be perk some would like...

Its not gonna happen

[skyline247]

Originally Posted by dictoresno

i dont think they would convert the Sprint network over to GSM. its kinda like how Vodafone owns Verizon, but you dont see them trying to convert them to GSM. they would probably keep their CDMA network and run both.

True. Besides, Imagine all of the device replacements they would have to be involved with to convert over to a complete GSM network. I know that when Verizon & Alltel merged (although they are both CDMA), Verizon is making all of the prior Alltel customers convert to Devices catered to the Verizon network. i.e. Vcast music, VZ Navigator, etc.

A lot of people are going to be dissapointed. I have read, many are thinking "Cool, now I can own a Palm Pre or HTC Hero". But if it goes down this way, it would be of no good. You would still have to go over to "Sprint", albeit the company would be now owned by the same parent company that owned your T-Mo.

This, in turn, might lead to DT spending less on T-Mo upgrades and updates. However, it may be a complete 360, and with the increased customer base, albeit prior "Sprint" customers, DT would have the money to revamp both the CDMA Sprint and GSM T-Mobile infrastructure.

[KasiCatastrophe]

Originally Posted by dictoresno

i dont think they would convert the Sprint network over to GSM. its kinda like how Vodafone owns Verizon, but you dont see them trying to convert them to GSM. they would probably keep their CDMA network and run both.

Verizon is going to be switching over to GSM. It is something that was announced back in 2007. They will of course still have their CDMA service, but their 4G network is going to be LTE (which is GSM.)

Verizon dumps CDMA for GSM-based LTE in 4G networks

Unlocked: Verizon To Go GSM

[skyline247]

Originally Posted by KasiCatastrophe

Verizon is going to be switching over to GSM. It is something that was announced back in 2007. They will of course still have their CDMA service, but their 4G network is going to be LTE (which is GSM.)

Verizon dumps CDMA for GSM-based LTE in 4G networks

Unlocked: Verizon To Go GSM

Yes, the next few years in the telecommunications field are going to be an interesting and exciting time. I predict that, at the most, we will be able to use our unlocked devices from any carrier on any network around the world. Granted, I know that world phones from Verizon and from AT&T will not be able to get T-Mobiles 3G, but I think after the LTE and 4G networks have been completed, any device will work.

This being said, it is also likely that the price of unlocked phones will also go up, as subsidies for new phones with new plans will in turn go down. Let's hope this isn't the case.

[Artemis68]

I heard about this rumor on another phone board. I'm not sure what to think about it.

It would be very costly to switch everything over to GSM if this happens. Maybe tmo would just keep the CDMA network as is? Then they could build phones that work on both the CDMA and GSM networks for better coverage? I don't know. That's my guessm

Posted from my CrackBerry at wapforums.crackberry.com

[soul4sins]

T Mobile cannot survive the telecom sector as it is currently structured. Before the consolidation that shaped the telecom sector to what it is today, T Mobile was structured well to compete. However, as it is now, T Mobile finds itself in a market dominated by large economies of scale generated by the consolidation with AT&T/Cingular and Verizon/Alltel. T Mobile's main competitors are suddenly Metro PCS and Boost Mobile. T Mobile's parent company, DT, has said that T Mobile has been a strain to its bottom line, and they (DT) cannot continue to inject billions of dollars and not achieve the kind of growth needed to stay competative with VZW, AT&T and Sprint. We see this with the merger in the UK. A Sprint/T Mobile merger is the only viable solution at this stage in the market. Deutsche Telekom knows that they dropped the ball by not bidding on AT&T back in 2004.

[Artemis68]

If this merger happens (Tmobile buying Sprint) how do you think this will affect current tmo/sprint subscribers?

Cause I really like my plan and don't want to lose it. I'm with tmo btw.

Posted from my CrackBerry at wapforums.crackberry.com

[skyline247]

Originally Posted by Artemis68

If this merger happens (Tmobile buying Sprint) how do you think this will affect current tmo/sprint subscribers?

Cause I really like my plan and don't want to lose it. I'm with tmo btw.

Posted from my CrackBerry at wapforums.crackberry.com

Noone really knows at this point I don't think. If it goes the way of DT keeping Sprint intact, and a continuance to operate Sprint as a separate entity from T-Mobile, it could hurt T-Mobile, IMO, by less funding from DT to upgrade and update T-Mobile's network infrastructure. As, I am sure, DT will have plans for revitalizing the Sprint infrastructure as well.

If DT plans to make it one big company, when the acquisition is complete, then the costs to convert CDMA to GSM would, I am sure, be astounding. That, I am sure, could be non-beneficial to current T-Mobile customers as well. But, as stated, who knows. There are too many pennies in the pot at this point, and noone is even sure that DT will even purchase Sprint. The only thing we know at this point, reported by Tmo News via newspaper Telegraph UK ( T-Mobile owner eyes multi-billion dollar bid for Sprint - Telegraph ) is that Deutsche Telekom has called in Deutsche Bank in preparation for an offer for Sprint. Hopefully we will know of more details within two weeks.

Listed are other articles concerning this:

Deutsche Telekom eyes bid for Sprint Nextel - Yahoo! News

Deutsche Telekom eyeing Sprint Nextel for acquisition?

[berryite]

Originally Posted by skyline247

David at Tmo News posted this today..... T-mobile To Buy Sprint Rumor, Take 24 | TmoNews - Unofficial T-Mobile Blog - News, Videos, Articles and more

This is funny. I have poo-poo'd these Sprint rumors for years.

The other day, I suggested in another thread about TMo and Orange merging in the UK that T-Mobile might do something dramatic here in the US such as merge with Sprint and here it is.

I'm not poo-pooing this one. I think it could have legs.

And I've been through a few international mergers in my career. DT wouldn't immediately tear Sprint/Nextel apart but after a few months, they definitely would move to absorb Sprint's operations into T-Mobile's. Look for the Nextel name to vanish and then Sprint stores to be co-branded Sprint-TMobile. Within 12-18 months, the Sprint name will also start vanishing.

I'd also predict the end of the CDMA operations as soon as it makes operational sense to start eliminating it.

I'm not saying this is 100%, but I'd bet it's well better than 50% likely.

The Sprint and Nextel brands could be a memory by 2011.

[berryite]

Originally Posted by larrygump

Its not gonna happen

Larry, these corporations are like sharks. If a shark stops swimming, it drowns. It must keep moving to stay alive.

With Verizon and AT&T growing, T-Mobile's gambit over time is either to expand or prepare to shut down and sell off.

DT has too much invested in their USA operations. And there is no TMo-Orange type of merger to do in the USA. DT couldn't buy Verizon or AT&T so if they are to remain a viable national carrier in the USA, they've got to do something dramatic.

My sixth sense says this rumor, which has been kicked around for years, is something more this time. If I were a betting man, I'd say there might well be something to this now. Keep a sharp eye. We all just might be surprised in the weeks and months ahead.

[trelawrence]

Originally Posted by berryite

Larry, these corporations are like sharks. If a shark stops swimming, it drowns. It must keep moving to stay alive.

With Verizon and AT&T growing, T-Mobile's gambit over time is either to expand or prepare to shut down and sell off.

DT has too much invested in their USA operations. And there is no TMo-Orange type of merger to do in the USA. DT couldn't buy Verizon or AT&T so if they are to remain a viable national carrier in the USA, they've got to do something dramatic.

My sixth sense says this rumor, which has been kicked around for years, is something more this time. If I were a betting man, I'd say there might well be something to this now. Keep a sharp eye. We all just might be surprised in the weeks and months ahead.

I agree for the most part...