Android Central

Sprint has finally confirmed that it will be taking a controlling stake in previous partner Clearwire. Now, even more interesting statements are coming out in regards to a possible bid for MetroPCS. Most assumed that with a confirmed buyout by Japanese carrier Softbank, Sprint was done trying to get in between a T-Mobile / MetroPCS merger. According to statements by CEO of Softbank Masayoshi Son and CEO of Sprint Dan Hesse, this may not be the case. Hesse, in a quote obtained by The Wall Street Journal, indicated that the structure of the Softbank buyout is set up in a way that gives Sprint cash to work with if a possible deal with MetroPCS arises:

"Think of it almost as an insurance policy. It's some money in the bank until the deal closes that, for some reason, if we wanted to do something we could."

Hesse continued, speaking to assumptions that in the future Sprint and T-Mobile could potentially merge to take on rivals AT&T and Verizon:

"We've got a transaction that's pending with Softbank, and then when we get together we'll take a look at the landscape and make our decisions then. If it's accretive and makes sense for our shareholders, I would do what it takes."

The U.S. wireless industry seems to be making some serious changes. It will be interesting to see what the carrier landscape in the states looks like in the next year.

Source: WSJ

 

Reader comments

Softbank not ruling out a possible Sprint bid for MetroPCS

10 Comments

Who knows the possible Sprint, Tmobile, and Metropcs merger might not be a bad idea after all. Meanwhile Sprint needs to take care of it's business while Tmobile will do it's work joining with metropcs.

I agree 100%. Letting T-mobile/PCS blend a little and establish its own brand for a while would be a good thing. It would allow Sprint to get its LTE deployed quicker , straighten out the Clearwire situation and do the 3G CDMA upgrade part of Network Vision.

Now if Sprint decided to they could keep the 2 brands separate but rent LTE space to the new T-mobile. Once both companies are using LTE primariy (on the same towers & frequencies) a merger becomes much easier (probably the 2015/2016 timeframe).

If T-Mobile and Sprint Merged, I'd Drop T-Mobile so quickly you'd assume I was a thief caught red-handed!

Sprint abso-freaking-lutely does not handle their business well in the slightest. Sprint was my first wireless provider many many years ago. When I left them they continued to send me a bill for $0 for over a year afterward even with me calling and complaining . . . .

I hope that your basis on sprint being horrible is not just on getting a bad bill or getting one after you weren't with them. Verizon and att have both had big problems with billing people after a contract is over or canceled. One personal experience is my mom, she canceled att due to horrible plans and bad customer service and she wasn't under contract and they still tried to bill her after she was done with them. Even with all these problems att is still number 2. So that alone doesn't show how a company really is.
In fact sprint is one of the companies that has improved customer service for the better every year for the last 3 years and both verizon and att have gone down.

its not going to merge they government already blocked tha att t-mobile merger y would they allow a sprint t-mobile merger its tha same thing verizon would go buy att and then u have a duopoly thats y it was blocked in tha first place

In now way should a Sprint/T-mobile merger be compared to ATT/T-mobile. ATT is already a top 2 carrier (26.8% market share) in terms of size, if they merged with T-mobile they would be WAY larger than Verizon (26%), that would leave Sprint (the only remaining national player) with less than 23% market share while ATT would have ~40% and VZW would have ~30%. That is very anti-competitive and could easily lead to price fixing and collusion.

Now a Sprint/T-mobile merger would create a company with ~34% marketshare. That would leave Sprint/T-mobile the larges with two other players having over 25% market share, essentially 3 large national options.

Also there were other reasons that ATT merger was blocked including false statements/promises by ATT for why they needed the merger, including not enough spectrum to deploy LTE (which obviously they are having no problem with).

Wow! A Sprint and MetroPCS merger would definitely help Sprint. But a Sprint and T-Mobile merger would be even better. The gov't blocked the AT&T deal with T-Mobile because it would've put them so far ahead of Verizon and Sprint. But if Sprint and T-Mobile merged they still wouldn't have as many subscribers as Verizon or AT&T.

you guys keep putting this picture of Dan Hesse looking extremely tired or sleepy...

I dont care what they do as long as they continue their philosophy, business ethics and have advanced LTE with in 12 months!