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Thread: What is Sprint's plan if the merger fails?

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    Quote Originally Posted by Qt0 View Post
    could sprint do something like sell their towers/spectrum to tmobile, and yet keeping the company separate, then almost acting like a tmobile sister company but still retaining some independence? there would still be the cost of converting existing sprint phones over to something compatible with tmobile, but makes me wonder if they could still have an alliance of sorts while still being two pseudo-separate companies
    Maybe but I think there are provisions in anti-trust law making asset transfers subject to review where these would have anti-competitive effect. Otherwise people could work around Justice department merger review very easily by just selling assets. I believe DOJ would block asset transfers too if it blocks the merger.

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    Bankruptcy liquidation. Probably purchased by Google or Amazon.

    Sent from my F1 using HoFo mobile app

  3. #18
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    I wonder if Sprint/T-Mo could enter into a network sharing agreement ala Bell/Telus? They both benefit from lower network expenditures as they share a single network, but would be counted as “two carriers” for competitive purposes.

    I also thought that another solution could love similar to the Canadians... Sprint and T-Mo each give up 10 MHz of spectrum to the FCC... maybe a block in PCS and a block in AWS. The FCC offers it up at a very reduced rate to someone (maybe Dish?) in the provision that it is built out... similar idea to what happened in Canada... it can’t be sold to any of the “big 3” for a particularly long time — the idea would be to create a 4th carrier that is price competitive, and focused on major cities — think Freedom Mobile. Difference from Canada would be that each of the merging companies are giving some spectrum up to make that happen...

    I just don’t understand how the regulators can be so stupid in this — don’t they realize how truly tarnished the brand of Sprint is? I hate to say it, but at this point I don’t know how Sprint could come up with a marketing campaign that could get them out of this... even if it was to rebrand into a dirt cheap “value carrier” option that can provide service for $15-25 a month.

  4. #19
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    Quote Originally Posted by NGeorge View Post
    I wonder if Sprint/T-Mo could enter into a network sharing agreement ala Bell/Telus? They both benefit from lower network expenditures as they share a single network, but would be counted as “two carriers” for competitive purposes.
    Yeah, I wonder that too. I guess it depends in the government would let them. They could either go 100%, or build separate networks within the beltways of major metro markets, and have a shared network in more rural areas and smaller cities.

    I also thought that another solution could love similar to the Canadians... Sprint and T-Mo each give up 10 MHz of spectrum to the FCC... maybe a block in PCS and a block in AWS. The FCC offers it up at a very reduced rate to someone (maybe Dish?) in the provision that it is built out... similar idea to what happened in Canada... it can’t be sold to any of the “big 3” for a particularly long time — the idea would be to create a 4th carrier that is price competitive, and focused on major cities — think Freedom Mobile. Difference from Canada would be that each of the merging companies are giving some spectrum up to make that happen...
    Sprint is not doing too great, and they are more than just an urban carrier. MetroPCS is gone, Pocket is gone, I just don't think that model works when you've got MVNOs offering rock-bottom pricing on all four networks today. The only potential advantage I could see would be rural fixed wireless for small WISPs. DISH and DirecTV both have more spectrum than they know what to do with in rural areas. At least AT&T has a working network and are slowly deploying their unused spectrum in rural markets, whereas DISH is not. If AT&T wanted to, they could start using regular LTE with 5xCA and offer 100mbps+ rural fixed wireless to bundle with DirecTV.

    I just don’t understand how the regulators can be so stupid in this — don’t they realize how truly tarnished the brand of Sprint is? I hate to say it, but at this point I don’t know how Sprint could come up with a marketing campaign that could get them out of this... even if it was to rebrand into a dirt cheap “value carrier” option that can provide service for $15-25 a month.
    If Amazon bought them, they could be Prime Wireless, and everyone would forget about Sprint....

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    Quote Originally Posted by Qt0 View Post
    could sprint do something like sell their towers/spectrum to tmobile, ......
    What you're talking about would almost be a strategic partnership. One issue is that everything Sprint "owns" is either rented, borrowed or mortgaged to the hilt. One of Sprint's prime "assets" is its customers. Without the customers' cash flow, the deal probably does not make sense.

    Quote Originally Posted by NGeorge View Post
    I wonder if Sprint/T-Mo could enter into a network sharing agreement ala Bell/Telus? They both benefit from lower network expenditures as they share a single network, but would be counted as “two carriers” for competitive purposes....
    The FCC has long encouraged this sort of arrangement. The way it would be done is by forming a not-for-profit company that is tasked with owning and managing the network infrastructure. Each carrier would then purchase capacity from this company. I can't see T-Mobile doing this unless that partnership were entirely based on LTE and 5G NR.
    Donald Newcomb

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    Quote Originally Posted by DRNewcomb View Post
    What you're talking about would almost be a strategic partnership. One issue is that everything Sprint "owns" is either rented, borrowed or mortgaged to the hilt. One of Sprint's prime "assets" is its customers. Without the customers' cash flow, the deal probably does not make sense.

    The FCC has long encouraged this sort of arrangement. The way it would be done is by forming a not-for-profit company that is tasked with owning and managing the network infrastructure. Each carrier would then purchase capacity from this company. I can't see T-Mobile doing this unless that partnership were entirely based on LTE and 5G NR.
    I am confident that the DOJ has the authority to block any combination agreement of any kind in lieu of a merger that it determines would have a similar effect in reducing competition.

    Sure, they might approve some agreements but only after careful review.

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    Quote Originally Posted by DRNewcomb View Post
    The FCC has long encouraged this sort of arrangement. The way it would be done is by forming a not-for-profit company that is tasked with owning and managing the network infrastructure. Each carrier would then purchase capacity from this company. I can't see T-Mobile doing this unless that partnership were entirely based on LTE and 5G NR.
    Would T-Mobile want Sprint to be on equal footing though? They'd end up competing each other down to a thin margin. There's a lot of technical reasons why that sounds like a great idea, but I just can't imagine T-Mobile would be thrilled about competing with an equal. At that point, it's all in perks and brand, plans, and phones, not the network.

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    Quote Originally Posted by DRNewcomb View Post
    I don't think this is how Chapter 11 works. It's not like personal bankruptcy, where you can "take a bath" to shed your personal debt, keep the car and house and start over. In Chapter 11, your creditors have to (mostly) agree to the plan. The stock holders (SoftBank) get the shaft, the bond holders probably get the shaft. Creditors probably have to kick in more "debtor-in-possession" financing to get anything out of the deal. If all the pieces don't fall into place, the only alternative is Chapter 7.
    Um, yes and no. Chapter 11 doesnt necessarily remove debt, thats mainly a chapter 13 that does that. Chapter 11 is used more for immediate debt relief under reorganization. The goal is to reorganize the business to be able to eventually pay off its debtors. Businesses that have gone through chapter 11 have had a mixed bag of results, its worked for some, hasnt for others. John Legere though has been through a successful chapter 11. He took Global Crossings through a successful chapter 11. That doesnt have much to do with Sprint, but, is an interesting side note.

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    The strategy would be to punch more holes in the leaking bucket.

    SoftBank would pour in more money backed by Japan.
    If my actions include deeds of philanthropy in charity and acts of loving kindness I am living in my Faith.

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