Cowen's report reveals what T-Mobile was going to do with Sprint

Cowen's report reveals what T-Mobile was going to do with Sprint
Even though T-Mobile and Sprint both agreed that there were benefits to merging the two major state-side carriers, in November of last year the pair called off their merger talks. As the BeeGees sang, "How could a love so right turn out to be so wrong?" As is typical with a possible transaction like this, egos got in the way. There was some speculation that Sprint CEO Marcelo Claure wasn't happy with reports that T-Mobile president and CEO John Legere was going to run the combined companies.

According to a report from brokerage firm Cowen, T-Mobile planned to shut down 30% of Sprint's cell sites once the deal closed. Additionally, the plan was for T-Mobile to employ Sprint's high-frequency 2.5GHz spectrum coast-to-coast. These airwaves would perfectly complement T-Mobile's low-frequency spectrum in the 600MHz and 700MHz bands. High- frequency spectrum doesn't travel that far, and does not easily penetrate buildings. Low-frequency spectrum travels farther and can more easily go through buildings. You might recall that the Un-carrier spent $7.9 billion last year on the FCC's auction of 600MHz spectrum. T-Mobile ended up winning 45% of the spectrum (31MHz) up for bids.

With Sprint and T-Mobile no longer in talks (and more telling, rumors of a merger are no longer disseminated), Sprint now plans on using its 2.5GHz spectrum to build out its own LTE network with $6 billion provided by corporate parent SoftBank. As for T-Mobile, CFO Braxton Carter
said earlier this month that the nation's third largest carrier will look for smaller acquisitions. The goal is to find companies where the purchased assets can be quickly plugged into T-Mobile's operations in order to strengthen the carrier's network.

source: FierceWireless

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8 Comments

1. CleeveThaGreat

Posts: 18; Member since: Sep 09, 2015

T-Mobile should stay T-Mobile...

2. tokuzumi

Posts: 1900; Member since: Aug 27, 2009

Sprint just makes bad decisions and then doubles down on them. They may own all of this high frequency spectrum, but if it doesn't go through walls like the other providers, it means more costs for Sprint, as they need more towers to have comparable coverage (I'm sure there's some pocket of earth somewhere that Sprint has better coverage than T-Mobile, but I've also heard about bigfoot sightings). This means more maintenance on their network. More employees to service that network, and higher prices for everyone on that network. Best decision I made was kicking them to the curb in 2011.

3. jonathanfiuwx

Posts: 182; Member since: Mar 10, 2017

yeah sprint had its share of problems... but i believe in the network vision technology and 2.5 ghz has really improved lately. been with them since 2005, still on my SERO plan, and im still confident in the company that i used to sell for

8. andrewc31394

Posts: 295; Member since: Jun 23, 2012

at least that makes one of us. in Southern CA data peak speeds were great but the consistency in their network was hands down the worst I've ever seen. and this is one of the biggest markets in the country so you think they'd want to set a good example here. not to mention their customer service is a joke. got hung up on by a supervisor when i told them my texts weren't going through so i switched to T-Mo and couldn't be happier, even with my bill being slightly higher now

4. talon95

Posts: 998; Member since: Jul 31, 2012

Their stock is falling and when their investors fire Marcelo I think in the end they will be forced to merge with T-Mobile, but T-Mobile will pay a lot less for them now that their stock is worth less and have lost a few million more customers. Sprint has very little chance of success without T-Mo 600 mHz and Legere leading it.

5. Butbut77

Posts: 1; Member since: Mar 21, 2018

T mobile should buy u.s. cellular instead, it would be less of a mess to integrate into t mobiles network and gives t mobile 5 million more customers

6. fastfreddy123

Posts: 66; Member since: Mar 25, 2017

Ive had Sprint and Tmobile at the same time there was only once that Sprint had better coverage. Sprint is cheap has better plans, but there customer service is Abysmal. I bought the HTC Bolt on lease and wanted to trade immediately [2nd day in the darn thing was so hot i thought it might explode] I had 30 days to exchange it. I called customer service they said i could take it to a Sprint store and exchange. LOL except oh wait i go to the Sprint store in Pocatello Idaho and they say they can't take it back because they are not a Corporate store so they cannot do exchanges only new contracts. So in Pocatello [ 55,000 peeps] You have to get a return packet and exchange that way. Then i had to order another phone so wait another 3 days without phone. I paid 330 for the dep for an HTC U11. Then the next mo i get a nasty surprise they didnt honor the 30 days i was supposed to have. Charged me 150.00 for ending my lease early plus the 65.00 the next months plan. So i said screw u and sent the phone back. To the dude that said he has confidence in Sprint . Bite me ! Another thing 5g is nice , but id rather have COVERAGE. Tmobile is great when there is coverage. Though I wish Tmobile carried HTC flagships . I loved my HTC U11 so much when I dumped Sprint that I bought the unlocked version for Tmobile. One more rant. LG G6 and the v30 600 AND 800 dollar phones and 7.0 Nougat? IN 2018 really. Never again will I purchase LG flagships. BLAH

7. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

US Cellular up for grabs, yet??

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