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Thread: FCC Approves T-Mobile-Sprint Merger

  1. #91
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    Quote Originally Posted by mogelijk View Post
    From what I've read, you are better off not buying a 5G phone this year. The issue is that the current 5G phones apparently have a separate radio for 5G, so they use quite a bit more battery running the second radio. The other issue is, of course, the limited availability of 5G, particularly inside buildings in areas where it has been deployed. So, unless a person needs that extra speed, the recommendation is to wait to buy a 5G phone until they get the 5G radio integrated.
    Well another main reason is that current 5G phones only support 5G bands in 28 GHz and 39 GHz. No low-band or mid band or even the 24 GHz T-Mobile recently won at auction.

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    Quote Originally Posted by shilohcane View Post
    Softbank doesn’t own Sprint they just have controlling stock in Sprint. They can’t buy any more Sprint stock but they can break up Sprint and sell it off piece by piece as Sprint goers out of business since they will never turn a profit with their current equipment.
    Or they could sell Sprint to a buyer where the sale would not result in a reduction of the number of national carriers.

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    True, but that might result in a company like Dish buying it, and how do you think that might play out?

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    Quote Originally Posted by CanadianAngela View Post
    Or they could sell Sprint to a buyer where the sale would not result in a reduction of the number of national carriers.
    Really and who would buy Sprint? Since SoftBank shopped Sprint around to Google, Apple, Amazon, Facebook, Carlos Slim, DISH, Comcast and Charter for years and only T-Mobile was interested. Sprint was in better shape two and three years ago. The only reason Sprint makes finical sense to T-Mobile is they already have the transmission equipment on towers that can be build out quickly plus the extra customers. Any other non-Network that buys Sprint would have to pour $50 billion into upgrading their equipment to 5G in the next few years. Top that off with Sprint is facing billions of dollars in Government fines for Lifeline fraud and no other company would want Sprint. Sprint is a dumpster fire.

    Sprint is worth more in a break up sale including selling their customers and spectrum. Sprint could also just sell their spectrum and become a large MVNO. The one thing for sure is Sprint bleeding $270+ Million dollars a quarter that is more that $40 Billion dollars in debt won’t be in business very long. Sprint is bleeding customers that is only going to speed up their complete shutdown and bankrupt sale.

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    Quote Originally Posted by shilohcane View Post
    Really and who would buy Sprint? Since SoftBank shopped Sprint around to Google, Apple, Amazon, Facebook, Carlos Slim, DISH, Comcast and Charter for years and only T-Mobile was interested. Sprint was in better shape two and three years ago. The only reason Sprint makes finical sense to T-Mobile is they already have the transmission equipment on towers that can be build out quickly plus the extra customers. Any other non-Network that buys Sprint would have to pour $50 billion into upgrading their equipment to 5G in the next few years. Top that off with Sprint is facing billions of dollars in Government fines for Lifeline fraud and no other company would want Sprint. Sprint is a dumpster fire.

    Sprint is worth more in a break up sale including selling their customers and spectrum. Sprint could also just sell their spectrum and become a large MVNO. The one thing for sure is Sprint bleeding $270+ Million dollars a quarter that is more that $40 Billion dollars in debt won’t be in business very long. Sprint is bleeding customers that is only going to speed up their complete shutdown and bankrupt sale.
    If the T-Mo/Sprint deal is quashed, Sprint's stock price is expected to drop to about $2. At that price the cost to buy Sprint is more like $10 billion. At that price (rather than $26 billion) someone other than T-Mo might be interested - telcos need not apply.

    Buying Sprint for $10 billion just gets a low-band spectrum-starved, patchy-coverage carrier incapable of making a profit. The buyer would need to believe that pouring tens of billions more into the investment would be profitable over a period of years. I don't see this happening.

    I don't think the current deal will be blocked by the handful of states opposing anyway. They are just being pests looking for concessions and promises. If a few states actually stopped T-Sprint from operating in their states, how do you think that would go over with the citizens of the state?

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    Quote Originally Posted by bobdevnul View Post
    If the T-Mo/Sprint deal is quashed, Sprint's stock price is expected to drop to about $2. At that price the cost to buy Sprint is more like $10 billion. At that price (rather than $26 billion) someone other than T-Mo might be interested - telcos need not apply.

    Buying Sprint for $10 billion just gets a low-band spectrum-starved, patchy-coverage carrier incapable of making a profit. The buyer would need to believe that pouring tens of billions more into the investment would be profitable over a period of years. I don't see this happening.

    I don't think the current deal will be blocked by the handful of states opposing anyway. They are just being pests looking for concessions and promises. If a few states actually stopped T-Sprint from operating in their states, how do you think that would go over with the citizens of the state?
    So who is going to pay the banks that loaned of over $40 Billion where Sprint used their spectrum and other Sprint assets as collateral to cover their loan in case Sprint defaults on their load. If the loan defaults the bank not Sprint owns that spectrum and other assets. SoftBank has already said they don’t own Sprint and are just a controlling stock investor. Sprint’s spectrum alone is worth far more than $10B in a break up and bankrupt sale. Sprint is on track to lose over a Billion dollars a year. Anyone buying Sprint better have deep pockets since they aren’t going to show a profit for years even if they invest billions and billions into upgrading their obsolete CDMA network.

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    Quote Originally Posted by shilohcane View Post
    So who is going to pay the banks that loaned of over $40 Billion where Sprint used their spectrum and other Sprint assets as collateral to cover their loan in case Sprint defaults on their load. If the loan defaults the bank not Sprint owns that spectrum and other assets. SoftBank has already said they don’t own Sprint and are just a controlling stock investor. Sprint’s spectrum alone is worth far more than $10B in a break up and bankrupt sale. Sprint is on track to lose over a Billion dollars a year. Anyone buying Sprint better have deep pockets since they aren’t going to show a profit for years even if they invest billions and billions into upgrading their obsolete CDMA network.
    The problem is they don't "own" their spectrum, they license the use of the spectrum from the government. As such, if Sprint goes into bankruptcy, the government likely revokes Sprints licenses (since they will no longer be abiding by the terms of the licensing agreement) and the government holds new auctions to determine who can buy the licenses.

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    Quote Originally Posted by L33 View Post
    Duh. Softbank will continue pouring millions into them to keep them afloat. Its the only logical choice when operating a failing business, keep putting more money into said failing business.
    The only logical choice? Funny how I see many owners of failing businesses that choose some form of bankruptcy or closure. Apparently there are other choices.

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    Quote Originally Posted by bobdevnul View Post
    If the T-Mo/Sprint deal is quashed, Sprint's stock price is expected to drop to about $2. At that price the cost to buy Sprint is more like $10 billion. At that price (rather than $26 billion) someone other than T-Mo might be interested - telcos need not apply.

    Buying Sprint for $10 billion just gets a low-band spectrum-starved, patchy-coverage carrier incapable of making a profit. The buyer would need to believe that pouring tens of billions more into the investment would be profitable over a period of years. I don't see this happening.

    I don't think the current deal will be blocked by the handful of states opposing anyway. They are just being pests looking for concessions and promises. If a few states actually stopped T-Sprint from operating in their states, how do you think that would go over with the citizens of the state?
    You're assuming Softbank is willing to sell Sprint for $10 bil. Say my car is worth $12,000 but I want $20K you can show all the proof that it's only worth $12K but if I want $20K then I want $20K. No one will buy it but maybe I don't care unless I get what I want.

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    Quote Originally Posted by mogelijk View Post
    The problem is they don't "own" their spectrum, they license the use of the spectrum from the government. As such, if Sprint goes into bankruptcy, the government likely revokes Sprints licenses (since they will no longer be abiding by the terms of the licensing agreement) and the government holds new auctions to determine who can buy the licenses.
    Oh you mean like at&t and Verizon who would love to get part of that 2.5 GHz band?

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    Quote Originally Posted by daleraver View Post
    True, but that might result in a company like Dish buying it, and how do you think that might play out?
    Dish is barely clinging to life itself and is loaded with debt.

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    Quote Originally Posted by shilohcane View Post
    So who is going to pay the banks that loaned of over $40 Billion where Sprint used their spectrum and other Sprint assets as collateral to cover their loan in case Sprint defaults on their load....
    If someone buys Sprint, they buy the liabilities along with the assets. What would happen with loans and bonds would follow the normal course of business law.

    Ownership of Sprint, as a publicly traded stock corporation, is by ownership of the of the stock. Softbank owns 84% of Sprint stock and completely controls selection of the board of directors and corporate executives members. By controlling the management Softbank controls the business decisions.

    That is all probably academic. I don't expect there will be another buyer.

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    Quote Originally Posted by Jack Hagar View Post
    You're assuming Softbank is willing to sell Sprint for $10 bil. Say my car is worth $12,000 but I want $20K you can show all the proof that it's only worth $12K but if I want $20K then I want $20K. No one will buy it but maybe I don't care unless I get what I want.
    Yes, of course, it would depend on Softbank being willing to sell at any given price. Selling at $10 billion would be a desperation, cut their losses, move.

    I would expect Softbank to explore all their options to get the best deal they can. Chapter 11(?) reorganization with renegotiation and/or forgiveness of debt could be a possibility.

    By accepting the T-Mo deal Softbank has indicated that they no longer want to try to operate Sprint as a profitable business. I assume that they believe that the probability of success is too low for the amount of additional investment that would be required.

    I don't believe that any of this will be necessary. The deal is approved by the federal government. The states objections will be placated or dismissed in court.

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    Quote Originally Posted by bobdevnul View Post
    I would expect Softbank to explore all their options to get the best deal they can. Chapter 11(?) reorganization with renegotiation and/or forgiveness of debt could be a possibility.
    It however isn't a possibility for Softbank. The issue with a Chapter 11 and debt forgiveness is that Softbank (and other Sprint shareholders) would lose their equity in the company and the debt-holders would gain equity in place of the money they are owed. Chapter 11 could keep Sprint open and running as an entity. But the ownership typically changes hands in those situations.

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    Quote Originally Posted by jet1000 View Post
    It however isn't a possibility for Softbank. The issue with a Chapter 11 and debt forgiveness is that Softbank (and other Sprint shareholders) would lose their equity in the company and the debt-holders would gain equity in place of the money they are owed. Chapter 11 could keep Sprint open and running as an entity. But the ownership typically changes hands in those situations.
    Interesting. I am not an expert on chapter whatever deals.

    All the more reason that Softbank wants the deal they agreed to with T-Mo.

    Note that the deal is for Softbank/Sprint to get ~$26 billion of T-Mo stock, not cash. IIRC, they also get a seat on the BOD. The T-Mo stock and one board member does not give them control of the "New T-Mo".

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