1. gariac's Avatar
    Deutsche Telekom CEO Holds Out Hope for a T-Mobile U.S. Deal (Exclusive) | Re/code

    Longer term, Hoettges admitted that T-Mobile’s current approach is not sustainable, especially given the need to invest between $4 billion and $5 billion each year just to keep up.

    “The question is always the economics in the long term … and earning appropriate money,” Hoettges said. “You have to earn your money back at one point in time.”

    Posted via CB10
    01-19-15 02:42 PM
  2. Ecm's Avatar
    Please add your own thoughts for the article. Simply posting a link to an article or quoting it is discouraged.
    01-19-15 02:59 PM
  3. Bonsaibo's Avatar
    Always torn between allowing a merger between Sprint and T-Mo. On one hand, could the combined pair give AT&T and Verizon true competition? I'd love to see what is, in effect, a duopoly, batted down. On the other hand, would the combined company simply start charging the same exorbitant rates that the two mega providers do? If the combined company would come at this from a "keep rates low and gobble up customers'" perspective, hopefully forcing AT&T and Verizon to counter with more competitive rates, I'm all for it. Realistically, I see the combined entity eventually taking the increased profit path, as they should, and raising rates to the level of the two mega providers. Thus, maybe this is not truly good for consumers.
    Septembersrain likes this.
    01-19-15 03:18 PM
  4. raino's Avatar
    Yeah, it's long been DT's plan to sell them off. The only way I see it happening is if an outsider comes in to buy TMO, or at least a stake of it. America Movil was mentioned at one point, as was Vodafone (when their recent roaming tie-up with TMO was announced.) The customer acquisition drives certainly are not sustainable, nor are the losses messiah Legere keeps posting. But the number of customers sure makes TMO look even more attractive a target, putting more money in DT's pockets.
    01-19-15 03:36 PM
  5. gariac's Avatar
    Please add your own thoughts for the article. Simply posting a link to an article or quoting it is discouraged.
    OK. I think it sucks. There are no suitable telecom partners. That just leaves deep pockets

    Posted via CB10
    01-19-15 04:53 PM
  6. raino's Avatar
    What do you guys think about Dish as a possible buyer? Although Charlie Ergen has said no in the past, Dish has swaths of spectrum, probably as much cash, and a large (albeit unhappy) customer base.
    01-21-15 12:21 PM
  7. Bonsaibo's Avatar
    The talk of a spectrum owner buying a telecom has been around for a while. I think it makes sense, especially with the AT&T/DirecTv tie up. I'd hate to see Dish's horrible customer service issues infect TMO.
    01-21-15 02:29 PM
  8. Septembersrain's Avatar
    I'm terrified of who'll buy it. Even more so of the idea that they'll make changes that'll undermine all the good. So far the changes have been a larger majority in favor of the customer....

    I think it's normal to feel slightly disillusioned and apprehensive at the thought of losing progress.
    Sent from my Lumia. ¯\_(ツ)_/¯
    01-21-15 02:35 PM
  9. gariac's Avatar
    If DT can't sell Tmob out right, one possibility is DT reduces it's equity in Tmob. Maybe partner with that French company. Then at some point DT could sell the rest of the equity.

    Other than antitrust issues, what stops Tmob from being sold is the investment to expand the network. That is, buying Tmob is only half the problem. What do you do with it when you own it?

    Think AOL-Time-Warner.


    Posted via CB10
    01-21-15 04:01 PM
  10. raino's Avatar
    If DT can't sell Tmob out right, one possibility is DT reduces it's equity in Tmob. Maybe partner with that French company. Then at some point DT could sell the rest of the equity.
    See, but they don't want to give up equity cheaply either. The DT guy says the strategy is unsustainable, but he probably appreciates the fattening JL is doing for a sale down the line. Remember when Iliad was offering something like $30 per share and DT wanted $40? The numbers are probably off but I distinctly remember they wanted more than Iliad was willing to offer--dare I say--could afford to offer.

    Other than antitrust issues, what stops Tmob from being sold is the investment to expand the network. That is, buying Tmob is only half the problem. What do you do with it when you own it?
    It's a chicken and egg situation here. They don't want to buy TMO because of the costs. But if TMO manages to scrape by, the buy-in is higher.

    Maybe SoftBank should have gone for TMO instead of Sprint. And I wonder why Carlos Slim isn't interested. Surely he has loftier goals in the US than just multi-carrier MVNOs?
    01-21-15 06:11 PM
  11. gariac's Avatar
    See, but they don't want to give up equity cheaply either. The DT guy says the strategy is unsustainable, but he probably appreciates the fattening JL is doing for a sale down the line. Remember when Iliad was offering something like $30 per share and DT wanted $40? The numbers are probably off but I distinctly remember they wanted more than Iliad was willing to offer--dare I say--could afford to offer.



    It's a chicken and egg situation here. They don't want to buy TMO because of the costs. But if TMO manages to scrape by, the buy-in is higher.

    Maybe SoftBank should have gone for TMO instead of Sprint. And I wonder why Carlos Slim isn't interested. Surely he has loftier goals in the US than just multi-carrier MVNOs?
    Remember that Tmo got the money to upgrade their service by selling their towers and then leasing them back. So Tmo swapped assets for liability. Tmo has more customers, but also more liabilities. I'd have to get uncranky and study the financial reports to see if it was a cash flow gain or not. But I'm still cranky from reading the FCC product database.


    Posted via CB10
    01-21-15 10:27 PM
  12. jelp2's Avatar
    So I tweeted JL saying that I keep reading about TMUS not being sustainable or profitable ( I was quoting from the articles), after saying I love TMUS. I wasnt trying to be a jack a$$. He did tweet back saying "there is no such news and to read more closely"
    1) If there is no news, what am I reading?
    2) I shouldn't have to read more closely to find the good stuff, that should be apparent.
    I'm just hoping all this goodness from them doesn't come to an end if someone else acquires them.
    Hopefully they can start to turn a profit, real soon.
    01-27-15 07:53 AM

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