Sprint Buyout by Deutsche Telekom AG?

[applerokr]

http://www.unstrung.com/document.asp?doc_id=107047&WT.svl=news2_1

What's Next for Sprint Nextel?
10.10.06

With the news that Sprint Nextel Corp. (NYSE: S - message board) chairman Tim Donahue would step down at the end of this year comes the prospect of more consolidation among the Big Four U.S. carriers.

Sprint Nextel, which reported disappointing quarterly results and has seen its share price drop by 25 percent this year, could be looking at a buyout either by a rival wireless service provider or by a major cable company.

Last year Sprint signed a deal with a consortium comprising Comcast Corp. (Nasdaq: CMCSA, CMCSK), Time Warner Cable Inc. , Cox Communications Inc. , and Advance/Newhouse Communications to bundle Sprint mobile phone service with the cable companies' existing high-speed data, voice and video packages. Sprint will invest $100 million in the joint venture, with the cable consortium putting up the same amount.

The nation's third-largest wireless carrier, Sprint Nextel has faced serious integration problems since the two companies merged in August 2005. Coming just two months after COO Len Lauer left the company, the departure of Donahue, who was CEO of Nextel before the merger, was not unexpected -- but it will do little to reassure Wall Street, which has shaved 25 percent off the troubled carrier's market cap since the start of the year. (See Sprint Cuts COO.)

Today's news "does not bode well for integration, recovery, and turnaround efforts within the organization," says Carmi Levy, senior research analyst at Info-Tech Research Group . It also does not necessarily bode well for Sprint's ambitious plans to upgrade its existing 3G network to more widely offer EV-DO connectivity, and to roll out a "fourth-generation" WiMax network in the coming years.

"If anything, I would expect next-generation infrastructure like WiMax to get the short end of the stick," explains Levy, "as Sprint reorganizes yet again to keep the existing core of its business from slipping away."

Ultimately, Sprint Nextel's problems boil down to trying to be too many things to too many people, adds Phillip Redman, research vice president at Gartner Inc. : "Sprint's in an identity crisis -- they need to figure out who they are, and with a laser focus direct their attention to their customer base and their strategy for the future."

That strategy could well involve selling the company to a rival carrier; according to many observers the most likely purchaser would be T-Mobile USA , which scored big in the recent auction plans, plans to begin rolling out its own high-speed, UMTS network at the end of this year, and has a parent company hungry for growth opportunities in Deutsche Telekom AG (NYSE: DT - message board). (See T-Mobile Confirms 3G Plans.)

"The auction and the resulting acquisition of additional spectrum is an important step forward for us," Deutsche Telekom's chief executive Kai-Uwe Ricke said in a statement after T-Mobile bid $4.2 billion to acquire additional spectrum in the FCC auctions last month, "and not just for T-Mobile, but for the Deutsche Telekom group as a whole which benefits from the growth of its U.S. business."

A T-Mobile purchase would combine the No. 3 and No. 4 U.S. wireless carriers, which use different networking technologies. Like Verizon Wireless , Sprint Nextel bases its service on CDMA, while T-Mobile, like Cingular Wireless LLC , uses GSM technology.

— Richard Martin, Senior Editor, Unstrung

:scare:

[Jonathanlc2005]

i hope not. then ill be looking for cingular. i hope that never happens, and hope it never sees light in these forums again.

[evossman]

Maybe the US will go to a standard and we can all get good service.

Also if they get bought out by someone else does that mean customer service will improve?

JK, interesting news tidbit.

[jschurawlow]

I am also seriously hoping sprint doesn't sell out to someone like T-mobile who employs such outdated technology and above all slower data rate/speeds. Plus on top of this has a GSM based network vs CDMA (eg big learning to curve to be able to support the CDMA network).

[kewlmascdude]

Sprint has plenty of money, i dont see any of this happening.

My prediction??? Once all these motos are released and at that point sprint will have the largest variey of handsets, i predict sprint will pull in a record quarter for new subscibers.

ALot of people even thoguh they shouldnt look at phone choice over other aspects.

SO all we can do is hope that sprint will pull in a bunch of newbies with the new handsets coming out.

Sprint need to advertise more about their data plan prices, everyone else pails in this part.

Verizon charges like 40 bucks for unlimited internet for the treo line.

sprint 15

[reemusk]

sprint has plenty of money because their raising text message rates and shedding off things.


i would switch to alltel

[rip]

Sprint has plenty of money, i dont see any of this happening.

My prediction??? Once all these motos are released and at that point sprint will have the largest variey of handsets, i predict sprint will pull in a record quarter for new subscibers.

ALot of people even thoguh they shouldnt look at phone choice over other aspects.

SO all we can do is hope that sprint will pull in a bunch of newbies with the new handsets coming out.

Sprint need to advertise more about their data plan prices, everyone else pails in this part.

Verizon charges like 40 bucks for unlimited internet for the treo line.

sprint 15


It's not a question of money, but a question of leadership. Since the merger Gary Forsee has been in charge. Since the merger everything has fallen apart.

[shamefulzero]

i hope not. then ill be looking for cingular. i hope that never happens, and hope it never sees light in these forums again.


Sprint has plenty of money, i dont see any of this happening.

My prediction??? Once all these motos are released and at that point sprint will have the largest variey of handsets, i predict sprint will pull in a record quarter for new subscibers.

ALot of people even thoguh they shouldnt look at phone choice over other aspects.

SO all we can do is hope that sprint will pull in a bunch of newbies with the new handsets coming out.

Sprint need to advertise more about their data plan prices, everyone else pails in this part.

Verizon charges like 40 bucks for unlimited internet for the treo line.

sprint 15

i hope not either! this would be the worst nightmare ever to come true. i for one wont be going to any carrier cuz this isnt going to happen.

[kulnet]

Oh goodness... If Sprint is bought out by Tmobile, I will never hear the end of it from my fiance. She is with Tmobile...

[cliffr39]

I am also seriously hoping sprint doesn't sell out to someone like T-mobile who employs such outdated technology and above all slower data rate/speeds. Plus on top of this has a GSM based network vs CDMA (eg big learning to curve to be able to support the CDMA network).


but then think of this. If they did buy Sprint out, now Tmobile would have more resources and network available to them to actually do the things they may have wanted to but were very limited from. Hard to say if it would be good or bad... but I just don't want Cingular to grab 'em if anything :)

alltel wouldn't be a bad buyer! Imagine Cricket hahaha

[coredump]

Chicken Little!! What happened!!!

[Jason Fate]

they talk about the integration problems with the two systems (cdma and iden) but predict t-mobile, ANOTHER different system, to buy them out, highly unlikely

[Sprint Know It All]

Wow we would have iden, cdma, and gsm... and we think that we are having problems putting two networks together? try 3! I work in customer service and i really wish i could slap the Piss out of the executives sometimes for the dumb***** decisions that have been done since the merger. maybe they should learn how to plan and take care of customer's. i wish i could let him take some of the supervisor calls that i have to take everyday and actually listen to what people are bit***ng about so they can actually address it. this really pisses me off because sprint has so much god Da** potential to be #1 but we just aren't getting were we need to go and that falls on management. I may just send mr. forsee an email about what the hell needs to be done up there. My family has a consulting company, maybe i should charge him for not having common sense. i almost went on a da** rant!!!!!!!! :mad:

[shamefulzero]

Wow we would have iden, cdma, and gsm... and we think that we are having problems putting two networks together? try 3! I work in customer service and i really wish i could slap the Piss out of the executives sometimes for the dumb***** decisions that have been done since the merger. maybe they should learn how to plan and take care of customer's. i wish i could let him take some of the supervisor calls that i have to take everyday and actually listen to what people are bit***ng about so they can actually address it. this really pisses me off because sprint has so much god Da** potential to be #1 but we just aren't getting were we need to go and that falls on management. I may just send mr. forsee an email about what the hell needs to be done up there. My family has a consulting company, maybe i should charge him for not having common sense. i almost went on a da** rant!!!!!!!! :mad:

is there any bigshot from sprint left from before the merger? do you think was just waiting on the merger to be complete before they started finding the identity? this article is just from a nut job right there isnt any trueth to this right? id be so sad. if sprint sold out.

[kewlmascdude]

you know what would rock, if tmobile merged with sprint and sprint made tri mode phones with cdma and gsm. we would get a signal anywhere

[sbiz]

The Sprint Nextel merger has shown how hard it is to pull GSM and 3g together. T Mobile would have the same problem. Because GSM is the standard in over a 100 countries, Sprint and Verizon would have already gone GSM had the CDMA 3g technology not been so much better for data transfer. Because significant patents are owned by Qualcom, the GSM telecoms int he developed world don't want to change.

CDMA is slowly making its way to the hinterlands of the world, but it is expensive. I just chatted with a friend on Yahoo Messenger on assignment to a university in Yogyakarta, Indonesia. He is using a local CDMA card for computer-thru-cell connections.

There has a golobal telecom 3g/GSM fight going on for nearly a decade. Whether T Mobile would purchase Sprint to move to its better technology or to bury it and win the battle is a question. It wouldn't be the first time the better technolgy was bought to bury it. Microsoft has done it for years.

[applerokr]

I hope sprint doesn't get bought out. However, there are problems going on with the company leadership.. wallstreet is taking note. Sprint has yet, after the merger to come up with a cohesive marketing image. They are all over the place. The handset issue will help for sure. The nextel buyout, alonged with nextel partners and then the other PCS partners... well you get the idea. Sprint had been really been taken a beating. Lets hope they get it together and the investors and wallstreet don't jump ship like so many company leaders are.

[applerokr]

The Sprint Nextel merger has shown how hard it is to pull GSM and 3g together. T Mobile would have the same problem. Because GSM is the standard in over a 100 countries, Sprint and Verizon would have already gone GSM had the CDMA 3g technology not been so much better for data transfer. Because significant patents are owned by Qualcom, the GSM telecoms int he developed world don't want to change.

CDMA is slowly making its way to the hinterlands of the world, but it is expensive. I just chatted with a friend on Yahoo Messenger on assignment to a university in Yogyakarta, Indonesia. He is using a local CDMA card for computer-thru-cell connections.

There has a golobal telecom 3g/GSM fight going on for nearly a decade. Whether T Mobile would purchase Sprint to move to its better technology or to bury it and win the battle is a question. It wouldn't be the first time the better technolgy was bought to bury it. Microsoft has done it for years.

Just one clarification. Sprint and Nextel are not integrating GSM. Its CDMA and iDen.

[applerokr]

One more thing,
this is all speculation, but T-Mo's Parents (as you could say) have more money than Sprint and most of the other carries. D.Telekom AG has the money, and we all know they need the spectrum... they announced just a few days ago that they will start to employ HSPDA (same as cingular), but on a slightly different band. Imagine what they would do with the Nextel bandwidth that sprint is wanting to use with WiMax....

I actually don't want to see Sprint get bought out...
and i Hope they don't turn in to someone like Verizon with pricing when their services are not on Par with them....

They've got their work cut out for them

[sbiz]

I actually don't want to see Sprint get bought out...They've got their work cut out for themI agree completely; but, with such shallow pockets in the midst of significant upgrades, it will be an uphill climb.

While Sprint's technology and pricing have always been ahead of the pack, its website, customer service and sales have not. That causes many to try the company down the street. Most consumers aren't techno enough to see what Vision and Powervision offer when considering which provider to choose. Verizon & Cingular sell with more pizazz and that hooks a lot of them. Only after sitting with a Sprint friend or associate and seeing the difference do they realize they are stuck in an agreement with the wrong provider.

[Sprint Know It All]

I agree completely; but, with such shallow pockets in the midst of significant upgrades, it will be an uphill climb.

While Sprint's technology and pricing have always been ahead of the pack, its website, customer service and sales have not. That causes many to try the company down the street. Most consumers aren't techno enough to see what Vision and Powervision offer when considering which provider to choose. Verizon & Cingular sell with more pizazz and that hooks a lot of them. Only after sitting with a Sprint friend or associate and seeing the difference do they realize they are stuck in an agreement with the wrong provider.

good post.

[shamefulzero]

can some sprint employees speak on this, this whole thread really freaks me out.

[Sprint Know It All]

i already entered my 2 cents. LOL

[Sanyo7400]

i think it is crazy talk. it was already known tim was going to retire after the merger. someone decided to try to get attention with writing the story. how many times has a story come out that sprint is possibly going to be bought out. i've worked there for 5 years and have read many, well, i still work for sprint. the billing migration starts this month, so soon all the customers will be converted over to one billing system, making things more cohesive in the customer care front. the hybrid phone is being pushed by nextel retention to migrate more customers over to cdma. everything seems to be falling into place. everything is being announced as being completed AHEAD of the schedule that was announced at the start of the merger. i think more people will be signing up once the motos are available and even more once hybrid phones are available to all (except the reamining affiliates). just think about all those people on verizon and alltel that love their cdma but have always wanted that nextel chirp to talk to their nextel buddies.. haha

[shamefulzero]

i think it is crazy talk. it was already known tim was going to retire after the merger. someone decided to try to get attention with writing the story. how many times has a story come out that sprint is possibly going to be bought out. i've worked there for 5 years and have read many, well, i still work for sprint. the billing migration starts this month, so soon all the customers will be converted over to one billing system, making things more cohesive in the customer care front. the hybrid phone is being pushed by nextel retention to migrate more customers over to cdma. everything seems to be falling into place. everything is being announced as being completed AHEAD of the schedule that was announced at the start of the merger. i think more people will be signing up once the motos are available and even more once hybrid phones are available to all (except the reamining affiliates). just think about all those people on verizon and alltel that love their cdma but have always wanted that nextel chirp to talk to their nextel buddies.. haha

that entire paragraph sets me at ease. once that is done sprint is going to be so freakin cool

[applerokr]

sprint has got to work on their marketing and image!

[Maja]

One more thing,
this is all speculation, but T-Mo's Parents (as you could say) have more money than Sprint and most of the other carries. D.Telekom AG has the money, and we all know they need the spectrum... they announced just a few days ago that they will start to employ HSPDA (same as cingular), but on a slightly different band. Imagine what they would do with the Nextel bandwidth that sprint is wanting to use with WiMax....

Actually I don't know if this is necessarily true. I was just reading recently how the telecoms were having issues deploying 3G in Europe due to the demand and the costs. The pockets may be deep, but not as deep as they would like people to believe.

As far as Sprint goes, things change all the time without people paying much heed. When Stout left no one really noticed because he was replaced with a former Nextel executive. Organizational changes occur every week, in some way, shape, or form. Instead of raising concern for those that left, ask yourself this; with the same people in place before, how well were they doing? Sometimes it requires some major restructing to bring things back in line. There are major integration activities underway now, including the upcoming relases of the hybrid phones and a complete overhaul of the billing system(s). While the Motorola lineup with be a nice addition, consider the ability to have your current Sprint capabilities combined with nationwide iDEN push-to-talk.

Do we also need to bring up the point that Sprint Nextel is currently one of the only providers in a position to actually have a surplus of spectrum? Consider Verizon's "unlimited" data plan, which does not allow for the use for a mobile broadband router, and also will shut you down should you actually use more bandwidth then they consider reasonable. It should really be called "monitored" data plan, rather then unlimited. Sprint Nextel is actually inviting you to use bandwidth, which should tell you something.

In the end, these rumors are not new. I've been with the company for 10 years, when we were only a wireline company. The talks of mergers, buyouts, etc.. were almost monthly, but for years they chose to go alone. Don't let another companies desires confuse you in regards to what is in the best interest of the company. It doesn't take a lot of logic, given the challenges with recent integrations, to know that some things just don't fit.

[shamefulzero]

Actually I don't know if this is necessarily true. I was just reading recently how the telecoms were having issues deploying 3G in Europe due to the demand and the costs. The pockets may be deep, but not as deep as they would like people to believe.

As far as Sprint goes, things change all the time without people paying much heed. When Stout left no one really noticed because he was replaced with a former Nextel executive. Organizational changes occur every week, in some way, shape, or form. Instead of raising concern for those that left, ask yourself this; with the same people in place before, how well were they doing? Sometimes it requires some major restructing to bring things back in line. There are major integration activities underway now, including the upcoming relases of the hybrid phones and a complete overhaul of the billing system(s). While the Motorola lineup with be a nice addition, consider the ability to have your current Sprint capabilities combined with nationwide iDEN push-to-talk.

Do we also need to bring up the point that Sprint Nextel is currently one of the only providers in a position to actually have a surplus of spectrum? Consider Verizon's "unlimited" data plan, which does not allow for the use for a mobile broadband router, and also will shut you down should you actually use more bandwidth then they consider reasonable. It should really be called "monitored" data plan, rather then unlimited. Sprint Nextel is actually inviting you to use bandwidth, which should tell you something.

In the end, these rumors are not new. I've been with the company for 10 years, when we were only a wireline company. The talks of mergers, buyouts, etc.. were almost monthly, but for years they chose to go alone. Don't let another companies desires confuse you in regards to what is in the best interest of the company. It doesn't take a lot of logic, given the challenges with recent integrations, to know that some things just don't fit.


lol now in english? please

[Maja]

lol now in english? please

I thought it was pretty clear myself. In short, things change all the time and have for years, whether at Sprint Nextel or any other company. There has always been rumors of mergers and buyouts, which are just that...rumors. Logic doesn't seem to make this a viable merger.

[scotsboyuk]

Actually I don't know if this is necessarily true. I was just reading recently how the telecoms were having issues deploying 3G in Europe due to the demand and the costs. The pockets may be deep, but not as deep as they would like people to believe.


I can't speak for every European network, but as far as I am aware 3G is being implemented at a steady rate, with HSDPA now being implemented and HSUPA to follow. T-Mobile UK apparently plans on a 20 Mbps network by the end of the decade.

[rip]

lol now in english? please

Ok lets see if I can help here.....Sprints financial position is very good, plenty of cash on hand and lines of credit that have yet to be used. 3G & 4G are not only coming about because of added capabilities, but greatly increased network capacity. Sprint Nextel has seen some executives leave this year, some voluntary some not. We knew this was going to happen. Maybe not quite yet, but still it was coming. The only thing that is "iffy" about all of this is Gary Forsee being in charge. When it comes to running a wireless company, he is no Tim Donahue or Len Laur. As far as Sprint Nextel being bought by T-Mobile or any other company...when the Sprint Nextel merger was approved the FCC said "no more mergers between national carriers will be approved". So you can forget about this happening.

Now MY opinion....Gary needs to buy all the remaining affiliates. NOW! Why you ask? Giving ANYBODY complete control over YOUR business in even 1 market is completely stupid. STUPID!!!! BUY THEM GARY or you will regret it more than you do now. Guaranteed!!!!

Deploy Rev A. faster than possibly imagined (by VZW), deploy WiMax on the iDEN network even faster. At the same time make sure the CDMA and iDEN networks have identical coverage, by expanding one to match the other. Everywhere including in the "remaining affiliate" markets. Yes I know you can do it, and yes I know how as much as you do Mr. Forsee. I do my homework too. Then launch the WiMax/iDEN phones with a Qualcomm CDMA chip in them. Using CDMA for voice, WiMax for data and iDEN for PTT. Since none of the above can replace all three on it's own. Not even tossing in Q-Chat will help, remember I do my homework too. I know as much about Q-Chat as you do Mr.Forsee. In "English" use the resources you have available to the best of their abilities. Until then you will be at the losing end of the battle. Guaranteed!!!!!

OH yeah, one more thing......KNOCK, KNOCK....Sprint Nextel....ANYBODY HOME?

Didn't think so.

[eirrom]

I am also seriously hoping sprint doesn't sell out to someone like T-mobile who employs such outdated technology and above all slower data rate/speeds. Plus on top of this has a GSM based network vs CDMA (eg big learning to curve to be able to support the CDMA network).

Doesn't the capital investment that T-Mobile would need to make to somehow support & grow both GSM & CDMA just make this idea seem crazy. I can't even imagine the train wreck that would be if was to become true. If you think the Nextel merger is not going so well, 3 different networks competing for money & attention. Ouch!

[scotsboyuk]

Doesn't the capital investment that T-Mobile would need to make to somehow support & grow both GSM & CDMA just make this idea seem crazy. I can't even imagine the train wreck that would be if was to become true. If you think the Nextel merger is not going so well, 3 different networks competing for money & attention. Ouch!

I have to agree with you boy. I don't think T-Mobile would want to get into a situation where they were supporting four different technologies. Granted that GSM and UMTS are compatible in the sense that UMTS handsets are GSM handsets too, but supporting CDMA and iDen alongside them would probably be rather tricky.

Even if one assumes T-Mobile would give iDen the boot rather sharpish, the CDMA would probably be harder to deal with. It would require both time and money, and I doubt T-Mobile would see any significant return on such an investment in the short term. It would be a long haul operation, and one they might consider just too bothersome.

[zenaa96]

Ok lets see if I can help here.....Sprints financial position is very good, plenty of cash on hand and lines of credit that have yet to be used. 3G & 4G are not only coming about because of added capabilities, but greatly increased network capacity. Sprint Nextel has seen some executives leave this year, some voluntary some not. We knew this was going to happen. Maybe not quite yet, but still it was coming. The only thing that is "iffy" about all of this is Gary Forsee being in charge. When it comes to running a wireless company, he is no Tim Donahue or Len Laur. As far as Sprint Nextel being bought by T-Mobile or any other company...when the Sprint Nextel merger was approved the FCC said "no more mergers between national carriers will be approved". So you can forget about this happening.

Now MY opinion....Gary needs to buy all the remaining affiliates. NOW! Why you ask? Giving ANYBODY complete control over YOUR business in even 1 market is completely stupid. STUPID!!!! BUY THEM GARY or you will regret it more than you do now. Guaranteed!!!!

Deploy Rev A. faster than possibly imagined (by VZW), deploy WiMax on the iDEN network even faster. At the same time make sure the CDMA and iDEN networks have identical coverage, by expanding one to match the other. Everywhere including in the "remaining affiliate" markets. Yes I know you can do it, and yes I know how as much as you do Mr. Forsee. I do my homework too. Then launch the WiMax/iDEN phones with a Qualcomm CDMA chip in them. Using CDMA for voice, WiMax for data and iDEN for PTT. Since none of the above can replace all three on it's own. Not even tossing in Q-Chat will help, remember I do my homework too. I know as much about Q-Chat as you do Mr.Forsee. In "English" use the resources you have available to the best of their abilities. Until then you will be at the losing end of the battle. Guaranteed!!!!!

OH yeah, one more thing......KNOCK, KNOCK....Sprint Nextel....ANYBODY HOME?

Didn't think so.
Aaahhhh! Wow! Sounds good to me and alleviates my concern with T-Mobile touching Sprint. Thanks rip for your contribution here.

[badqat]

As far as Sprint Nextel being bought by T-Mobile or any other company...when the Sprint Nextel merger was approved the FCC said "no more mergers between national carriers will be approved". So you can forget about this happening.

So that explains how AT&T scooped up Bell South and with it, 100% control over Cingular (soon to be AT&T wireless again), eh?

But, just for the record...I think the talk of a merger between T-Mobile and Sprint is downright stupid, being nothing more than the ravings of a really bored analyst who likes to stir the pot.

[JeffDTD]

SO glad other people around here have their sense about them.

WHY AREN'T WE TALKING ABOUT SPRINT AND ALLTELL MERGING???

that would make sense

[parrott84]

agreed. It would definitly help our rural coverage.

[JeffDTD]

How many customers does Alltell have? If they merged, wouldn't that make them the biggest provider?

[badqat]

How many customers does Alltell have? If they merged, wouldn't that make them the biggest provider?

Alltel has a bit over 15 million. Small potatoes in terms of a "national" carrier, but yes, that would make the combined company the biggest provider.

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