Sorry, competition is what brings prices down.....a merger would result in fewer companies out there, which would mean an increase in costs.
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Sprint Working on Potential T-Mobile US Purchase
- Thread starter MacRumors
- Start date
- Sort by reaction score
Sorry, competition is what brings prices down.....a merger would result in fewer companies out there, which would mean an increase in costs.
True, but what some of us are concerned about is will they fix the things that put them in 4th place.
But of course.
Enjoy...
- Apple: 21.67% (source: Yahoo Finance)
- AT&T: 5.84% (source: Yahoo Finance)
- Verizon: 1.84% (source: Yahoo Finance)
- Sprint: -9.34% (source: Yahoo Finance)
the profit margins under the profitability section. Operating margin is pre-tax, profit margin is after taxes are paid.
Of course, all of these figures come from the respective companies' SEC filings.
Assets and intellectual property are two very different things.
There is very little innovation coming from telecoms. There are only a handful on this planet that actual do substantial R&D (NTT DoCoMo is one).
The telecoms' assets are pretty fixed for their purposes. Something like >90% of AT&T's capital investment is locked in the subscriber loop, the last mile from the central office to the individual's house or business. Stuff like copper wires, fiber optic junction boxes, cellular tower transmitters. This stuff isn't worth much to Apple.
If you're going to peruse the Yahoo Finance links above, why not take a look at Apple and AT&T's balance sheets. You can see that AT&T has a huge amount locked up in Property Plant & Equipment. Apple has very little of that category, most of their assets are in Long Term Investments (like real estate).
AT&T also has a sizable amount of long-term debt. As a matter of fact, they have a decent pile of cash in the USA, and a huge pile of it overseas. Apple's long term? Very little, less than their cash on hand. They could probably pay back their loans tomorrow, but the interest rates on those loans are probably so favorable, it's cheaper to use someone else's money than their own.
Again, being in the telephone industry is much less profitable than designing smartphones. Heck, Apple stepped away from manufacturing its own products; that's not a particularly profitable business either.
Apple could have built their own network from scratch. They could have acquired someone else. They could have functioned as an MVNO like Straight Talk. They could have done this for any cellular market on this planet, not just the USA. In the end, they decided not to do this anywhere.
Buying mobile network operators does not fit Apple's business strategy. At the end of the day, the mobile network is a dumb pipe.
Go ahead. Go to the library, switch on WiFi, turn off cellular data, then ask yourself what you are missing.
Last edited:
Guess I'm one of the few on here that's all for it.
I've alternated between AT&T and Sprint for the past 15 years (8yrs AT&T and with them currently, 5 yrs Sprint old red logo and new yellow logo) and have had great service with both. Never had Verizon except for FIOS but know their phone service is great too. As far as T-Mobile goes, it seems people complain about their less than stellar service but let it slide due to their lower prices. They could use Sprint's help instead of being the perpetual 4th place that they always are. If it eventually happens, I'll like seeing Sprint compete against AT&T and Verizon on a more level playing field.
I've alternated between AT&T and Sprint for the past 15 years (8yrs AT&T and with them currently, 5 yrs Sprint old red logo and new yellow logo) and have had great service with both. Never had Verizon except for FIOS but know their phone service is great too. As far as T-Mobile goes, it seems people complain about their less than stellar service but let it slide due to their lower prices. They could use Sprint's help instead of being the perpetual 4th place that they always are. If it eventually happens, I'll like seeing Sprint compete against AT&T and Verizon on a more level playing field.
Wow! So the crappiest USA CDMA carrier wants to buy the crappiest USA GSM carrier, WOW!
I'm assuming we would want to use that Sprint Spectrum and turn it into a decent-competitive to AT&T GSM carrier and not the other way around. CDMA is crap, GSM rules the World!
-Mike
----------
True! But looking at these two particular companies is like looking at a chicken without a head. They both need serious help here.
-Mike
----------
They are both crap so this is a perfect marriage here.
-Mike
----------
I agree!
-Mike
----------
Saving money no but better service from two crappy carriers combined yes. But even if this happens it will take years for things to be migrated and working properly. Look back at the Cingular/AT&T mess and Cingular was already GSM weren't they?
-Mike
I'm assuming we would want to use that Sprint Spectrum and turn it into a decent-competitive to AT&T GSM carrier and not the other way around. CDMA is crap, GSM rules the World!
-Mike
----------
True! But looking at these two particular companies is like looking at a chicken without a head. They both need serious help here.
-Mike
----------
They are both crap so this is a perfect marriage here.
-Mike
----------
I agree!
-Mike
----------
Saving money no but better service from two crappy carriers combined yes. But even if this happens it will take years for things to be migrated and working properly. Look back at the Cingular/AT&T mess and Cingular was already GSM weren't they?
-Mike
If they end up combining together, then they should not be able to buy any spectrum in the upcoming 600 mhz auction.
Sprint already owns significantly more spectrum than the rest of them. Combining with TMobile makes their holdings even larger.
Leave it to AT&T and VZW.
I don't think Sprint buying TMo is the way to go. They need to slowly buy the little regional carriers, like US Cellular, etc. However, that doesn't seem like it will happen. VZW and AT&T can offer much more money and are willing to pay just for the spectrum.
Sprint already owns significantly more spectrum than the rest of them. Combining with TMobile makes their holdings even larger.
Leave it to AT&T and VZW.
I don't think Sprint buying TMo is the way to go. They need to slowly buy the little regional carriers, like US Cellular, etc. However, that doesn't seem like it will happen. VZW and AT&T can offer much more money and are willing to pay just for the spectrum.
It always is no matter what and takes a long time. Look back at the Cingular/AT&T merger.
-Mike
----------
No, not even close and they have a really crappy/slow over crowded network too.
-Mike
----------
Ahhah, broke ass Tmobile is buying nobody...
-Mike
----------
GSM is out the door, what? Have you traveled outside of the USA? Most of the rest of the World runs on GSM networks not crap CDMA!
-Mike
QUOTE=mpantone;18497919]Unlikely.
T-Mobile USA's parent company Deutsche Telekom wants to divest itself of its majority stake in the US subsidiary.
Sprint is the larger company and is owned by Softbank Corporation of Japan. Softbank recently upped their Sprint ownership stake from 78% to 80%, so it does not appear likely that Softbank is trying to divest itself of Sprint.
I don't know who your T-Mobile sources are, but they are likely delusional.
In any case, the merger would not result in immediate consolidation and redeployment of network technology. Users of the legacy networks would still be supported for many years to come. Note that eight years elapsed between Sprint's acquisition of Nextel in 2005 and the shuttering Nextel's iDEN network in June 2013.
Converting everyone to GSM would be a massive waste of money as GSM is headed out the door. GSM and CDMA are circuit switched networks, incompatible with LTE (a packet network). Future voice communication protocols will be packet-based.[/QUOTE]
----------
There we go, lets send it over to AT&T they have the money to buy it.
-Mike
-Mike
----------
No, not even close and they have a really crappy/slow over crowded network too.
-Mike
----------
Ahhah, broke ass Tmobile is buying nobody...
-Mike
----------
GSM is out the door, what? Have you traveled outside of the USA? Most of the rest of the World runs on GSM networks not crap CDMA!
-Mike
QUOTE=mpantone;18497919]Unlikely.
T-Mobile USA's parent company Deutsche Telekom wants to divest itself of its majority stake in the US subsidiary.
Sprint is the larger company and is owned by Softbank Corporation of Japan. Softbank recently upped their Sprint ownership stake from 78% to 80%, so it does not appear likely that Softbank is trying to divest itself of Sprint.
I don't know who your T-Mobile sources are, but they are likely delusional.
In any case, the merger would not result in immediate consolidation and redeployment of network technology. Users of the legacy networks would still be supported for many years to come. Note that eight years elapsed between Sprint's acquisition of Nextel in 2005 and the shuttering Nextel's iDEN network in June 2013.
Converting everyone to GSM would be a massive waste of money as GSM is headed out the door. GSM and CDMA are circuit switched networks, incompatible with LTE (a packet network). Future voice communication protocols will be packet-based.[/QUOTE]
----------
There we go, lets send it over to AT&T they have the money to buy it.
-Mike
Huh? Where exactly is this far superior LTE network you speak of? I went searching for it but didn't find much. Maybe you are talking about their new 20+ LTE network which is available almost nowhere yet.
-Mike
-Mike
But this merger would mean more very large carriers that can compete with one another (3 vs 2).
Ahaha yeah you might want to fix that.
-Mike
----------
Cool!
-Mike
-Mike
----------
Cool!
-Mike
![URL]](/proxy.php?image=http%3A%2F%2F%5BURL%3Dhttp%3A%2F%2Fs140.photobucket.com%2Fuser%2Fbigredape%2Fmedia%2F488143_10151241850601746_1194916919_n_zpsdcf1e58e.jpg.html%5D%5Burl%3Dhttp%3A%2F%2Fi140.photobucket.com%2Falbums%2Fr33%2Fbigredape%2F488143_10151241850601746_1194916919_n_zpsdcf1e58e.jpg%5DImage%5B%2Furl%5D%5B%2FURL%5D&hash=a9d62e06c26dd9540e916c49d8dfd7c2)
Huge difference. I have no problem with Samsung they make great TVs but when it blatantly copies from Apple there is a problem ergo the lawsuits
I wholeheartedly approve of this.
I mean.. DAWWWWWWW!
----------
Not just no, but HELL no.
Sprint refuses to allow unlocked phones not sold by them onto their network, AND refuses to unlock their phones for domestic use, period, even out of contract.
I'd rather not such an anti-customer company buy out one that gives you so much freedom to unlock and use any phone you wish.
Yes! This will even the field out and the merger will benefit both Sprint and Tmobile. Keep the unlimited everything plan for 65 and a greater network, boom success.
the feds blocked the AT&T - T-Mobile merger but let the AA & USAir go through, which will probably result in higher air fares for all...
Bribes and political influence in the right places....works wonders. The regulatory agencies are very open to "influence"..
----------
I'm fully in agreement with you. Samsung makes great TVs.
If this happens, I'll likely just do without a cell phone. I won't do business with Verizon, Sprint or AT&T. People complain about t-mobile's coverage, but Sprint takes the cake when it comes to crap service.
Sprint's service, management and customer service is only slightly worse than that of the Federal Government.
Sprint's service, management and customer service is only slightly worse than that of the Federal Government.
If this happens I guess I will keep my business with AT&T, I really liked T-mobile but Sprint customer service is ultimate crap and I won't be dealing with them or their ridiculous unlocking policies. Besides with all the great strides Tmobile has been making is it really wise to give up all that?
With the current system, pricing is completely out of control. MVNOs and T-Mobile are the only ones that are even remotely making sense, but pricing should still be lower than what it is. How could things get worse?
The playing field needs to be leveled a bit. One cell phone standard (LTE) for all carriers/phones. No subsidies on phones. Only then will there truly be competition. Right now it's all a bunch of smoke and mirrors.
----------
One emergency later, and you'll be regretting that decision. Better to go with some sort of prepaid / by the minute service than not carry a phone at all.
Hell no. I came back to T-mobile to get way from Sprint (ok, and Tmobile finally got the iPhone).... so hell no....
Wait a minute wasn't the CEO of Sprint one of the most outspoken people trying to ban the AT&T - Tmobile takeover? But yet now he is trying to do the same thing? He even went as far as to say that if the government allowed this it would be an outrage and a disservice to consumers.
This is not a good counterargument at all, oh eye rolling one. Sprint plus T-Mobile added together are still smaller than AT&T. And yes, size does matter (or more accurately, market share) in the approval of mergers. The government does not have good cause to block this.
Bad. Sprint is garbage, I will never subscribe to them. T-Mobile is superior, esp. pricing and customer service.
Also, this is Exhibit A concerning why I purchase my cell phones unlocked and contract-free. If this merger does go through, I am gone in a minute and will sign with a low-cost GSM carrier. Could also do CDMA.
Just another reason why the unlocked "Verizon" version of the iPhone 5s was the smart unlocked purchase choice. Great phone, all radios unlocked, maximum flexibility and resale value.
Also, this is Exhibit A concerning why I purchase my cell phones unlocked and contract-free. If this merger does go through, I am gone in a minute and will sign with a low-cost GSM carrier. Could also do CDMA.
Just another reason why the unlocked "Verizon" version of the iPhone 5s was the smart unlocked purchase choice. Great phone, all radios unlocked, maximum flexibility and resale value.