On Sunday, The United States said the operator of the No. 2 wireless, AT & T, plans to buy No. 4 player wireless T-Mobile USA in a deal worth $ 39 billion. If approved, the acquisition by the organizers, and can cause major problems for Sprint. It will be the carrier, which was far away third for Verizon Wireless and AT & T, the further behind in terms of customers.
At the end of 2010, the enemy was about half the number of customers, Verizon Wireless and AT & T, and ending the year with 49.9 million customers. 102200000 was Verizon customers, and AT & T was about 95.5 million. If AT & T T-Mobile adds the country’s 33 million customers, the new provider has a total of about 129 million subscribers, giving the company a joint nearly three times the number of clients and the enemy has.
“There is no doubt this puts the enemy in a very difficult position,” said Kenneth Rehbehn, principal analyst at Yankee Group.
The enemy recognizes that the imbalance will make a huge difference in the industry. In a statement issued late Sunday, the organizers urged the company to take a closer look at the merger.
The enormous size of its competitors with respect to Sprint is definitely an issue, but the merger between AT & T T-Mobile and also bad news for Sprint for a number of other reasons.
For one, and I have T-Mobile is one of the sources of the main enemy of the participants, according to the analyst in the equity capital Craig Moffett of Bernstein. He wrote in a research note to investors on Monday that the combined AT & T T / T-Mobile is likely to reduce violence on the T-Mobile network, which can dry out new growth in the number of subscribers to Sprint.
For nearly two years, was said to be eyeing Sprint T-Mobile to get an acquisition. We have also recognized that companies that are considering a potential partnership between T-Mobile and Clearwire, which is building a wireless network using 4G 2500 MHz spectrum from the enemy. Nothing is achieved than ever of these discussions. But if T-Mobile is acquired by AT & T, Sprint no longer a partner Telco possible to share the cost of building a network Clearwire.
“Sprint will now be stayed from having to fund Clearwire on its own, with low development costs in the future, probably in the range of the billions of dollars,” said Moffett in a research note to him. “Despite the difficult network economies posed by the 2.5 GHz spectrum and Clearwire, it is still in the interest of the enemy to know Clearwire success, given the size of their investments. To reach an agreement with T-Mobile It is clear that this burden has been offset in part.
Crisis and 4G Spectrum
In addition, an agreement between T-Mobile and AT & T, and strengthen AT & position T of the spectrum, which makes the ultimate enemy more vulnerable as they go up against AT & T and Verizon Wireless, which both have positions spectrum is very strong for the future.
From T-Mobile with the picture, there are no large blocks of spectrum Left Sprint for use in the future to LTE, “said Rehbehn.
Committed by the enemy in the early to use the «WiMAX» and its technology of choice for wireless network 4G. The partnership with Clearwire and dedication in the 2500MHz spectrum to build a national network of Wi-Max. But since the companies began to build a WiMax network, it became clear that the rest of the world – including the dominant wireless companies in the United States – used long-term evolution of mobile networks in the future.
The CEO of Sprint, Dan Hesse repeatedly that the company is still committed to WiMax, but insiders have hinted that LTE can be a road map on the bus. It also noted that Clearwire can be used on the long-term development in the future. But some experts doubt that the high-frequency 2500MHz spectrum that Sprint and Clearwire are using to build a WiMAX network will work well for long-term development.
And can continue to draw between the T-Mobile and Sprint gave the enemy more spectrum with which to build a network of long-term development. T-Mobile has built itself a strong position G, and invest a lot in recent years in the fiber and other infrastructure that connects the cell and mobile phone base stations to the Internet and traditional phone networks.
Now, it seems like a nice T-Mobile U.S. and backhaul on the whole follow-up will go to AT & T, which plans to use it to strengthen its own network. And most powerful AT & T, means bad news for small competitors. T-Mobile, and good coverage in cities, like New York City, and AT & T, which can influence to alleviate the problems it has in those markets. And the AWS spectrum can be used to add capacity at the end of the day on the long-term development.
However, it could be a merger between the enemy and T-Mobile nightmare for Sprint.
“It was Nextel all over again,” said Rehbehn. “Look how much she had been taken to rationalize the acquisition of Sprint.”
Sprint bought Nextel, which use network technology iDEN called, in 2005. While Sprint’s acquisition of more customers through the acquisition, it is still – after six years – struggling to integrate the network with the network expanding CDMA own. At the same time, continues to bleed the enemy of the former Nextel customers each quarter.
He called T-Mobile also uses a technique completely different from the enemy, GSM. And try to merge network CDMA with Sprint T-Mobile GSM network has been difficult.
What’s next for Sprint?
Some industry observers wonder if Verizon Wireless may make a bid for Sprint. Airlines on both CDMA two to use. We wish that the agreement between AT & T and T-Mobile, and marriage between these key players offer a wide range of options for spectrum carrier combined.
“As we enter the next era of wireless, spectrum is what matters,” said Rehbehn. “Translates to the frequency spectrum, and this is what is required in the wireless networks in the future.”
But is it certain that such an agreement be scrutinized by regulators.
“Regulatory obstacle to Verizon for Sprint will be much higher than it was for Verizon for Alltel,” said Ross Rubin, an analyst at NPD Group. Verizon bought Alltel, CDMA regional player, in 2009.
The CEO of Verizon Wireless, Daniel Mead, told Reuters on Monday that is not interested in the Verizon and Sprint because it does not need it. He also said that Verizon would not oppose the merger between AT & T T-Mobile.
There is a chance that the enemy may join forces with the player to a wireless network in the region. Leap Wireless, which owns the brand of cricket, to expand its network in an attempt to become the national carrier. Leap also uses CDMA, and can be a good candidate for the integration of Sprint. What is more, the jump is also building a network of long-term development, which could be Sprint’s long-term future development.
It is likely that the merger between the enemy and a smaller wireless provider should be encouraged by the organizers, because it will lead more customers to the enemy, making it easier to compete with No. 1 and No. 2 players.
Other possibilities include the acquisition of major cable operator Sprint. Comcast and Time Warner Cable already partners with the enemy in Clearwire. These companies also worked together in the past on a joint project that would allow cable operators to resell Sprint wireless services. Bundled services did not get off the ground. But continued to Comcast and Time Warner Cable to search for wireless play.
In 2006, as companies got spectrum in the AWS auction run by the FCC. Even now, were not said what it intends to do with this spectrum, but if you bought Sprint could use the spectrum to build a network of U.S. long-term development.
At the same time, Sprint best we can do to compete in the current market. Specifically, it is trying to differentiate itself by providing customers the experience of what it sees as more open. For example, on Monday, Sprint announced that it plans to integrate Google’s voice in the service of a cell phone.
And Integrated Groups service will allow customers to voice the enemy to use the phone number as the number Sprint voice groups. The enemy is to allow users also to use the Google Voice Google Voice services, such as voice mail, instead of the enemy the same voice mail services. In short, the company is to allow a third party to monitor some of the customer experience to their machines.
This is important because the enemy is to relinquish control of the customer experience to some extent in order to enable this service. But on the other hand, Sprint is opening up some of its services to a third party can continue to innovate and create new experiences and best customers.
“Give up some of the things opens us up to more markets,” said Kevin McGinnis, vice president of product development and technology for the purposes of the enemy. “Over the past two years have shown much more innovation than our competitors in this regard, we have focused our development resources to enable innovative ecosystem.”
The big question is whether consumers value this “opening up” enough to choose two of the biggest competitors on the enemy. The jury is still out on that. But the enemy is making headway with consumers. Although the enemy is still losing customers every three months, it has managed to slow the losses.
He said, “We have always sought to distinguish ourselves by being open to third parties,” said McGuinness. “So this is not a new idea for us, and we do not think that any of the recent events will require us to change that. We will stay in English
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