Merrill Lynch analysts suggest that because of a strong euro and looming price wars, Deutsche Telekom might make a bid for beleaguered Sprint and add it to its T-Mobile USA unit. In theory it may seems like a wonderful idea. In reality, if this deal happens, then it is going to be worse than a Las Vegas wedding after a night-long binge! The combined company will operate four different kind of networks — iDen, CDMA, WiMAX and GSM. Did these analysts forget that the iDEN-CDMA integration has been one of the major reasons for Sprint-Nextel’s troubles?
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3 trackbacks so far
3:52 AM PT
[...] Malik pretty much nails the challenge that such an acquisition would have. Sprint’s customer base would do [...]
8:01 AM PT
[...] & Sprint/Nextel May Wed? The blogging great Om Malik has a rumor about Deutsche Telecom considering buying Sprint/Nextel to combine with it’s US T-Mobile operation. Om and his readers point out some very valid technical concerns about merging the two companies. [...]
11:28 AM PT
[...] far, I’m not seeing a lot of love for a rumored Sprint and TMobile deal. Om Malik over at Gigaom says “Just say no…Now”. And thats pretty much the theme most bloggers are [...]
18 comments so far
12:27 AM PT
Beyond the technical problems you’ve mentioned, I can’t think of two companies I like dealing with less. Marry them and add an Indian call center, and voila, you’ll have telecom hell.
2:55 AM PT
Please nooo! I owned a Nextel/Sprint Authorized Dealer in Arizona and had to close 4 months after the merger because of such high competition for corporate stores and horrible products. Now I have T-Mobile w/ a 8320 Blackberry and love them, they have great customer service, unlike Sprints horrible CS.
6:10 AM PT
Five, if you count T-Mobile’s move to UMTS
6:11 AM PT
Despite the technical and customer service issues, wouldn’t this still be a steal for T-Mobile given the pathetic value of the USD? If anything, would it be able to sell off Sprint’s parts and keep the things that would benefit its network in the long run?
6:38 AM PT
Technology and market wise is makes some sense. it may look good financially on the surface. But, the merger of Nextel and Sprint has and continues to be a problem both technically and business wise. Now let’s add the merger of T-Mobile to the equation…
I hope Deutsche Telekom’s analysts are smarter than Merrill Lynch’s analysts.
7:42 AM PT
@ Bashar,
Thanks for reminding me of the UMTS, fifth “network” technology they are pushing.
@Raymond,
the technical and customer issues are a massive headache. I think it makes absolute sense for Sprint to figure out a game plan: grow its CDMA business. And focus on 4G.
7:44 AM PT
Nascar would have to change the name again. The T-Mobile Cup. Ugh.
7:55 AM PT
Aw, hell! Say it isn’t so. I really like T-Mobile. They’re the first cell carrier in memory that could even spell customer service.
11:04 AM PT
If you want to make some money, buy Sprint while it is low. It will climb. Sprint will get it together and Surprise you all.
6:06 PM PT
and what exactly is wrong with an Indian call center Jeff?
7:17 AM PT
GM: I hope you’re write. I’ve been a satisfied Sprint customer for more than a decade (love that SERO). I’m also intrigued with the possibilities of WiMax. However, the company is poorly run, had no identity, and isn’t very focused.
Om: I was initially thinking that the purchase would make sense for T-Mobile just for WiMax. It could then sell the CDMA portion of the business to Metro PCS. Didn’t Metro PCS try to expand by propsing to merge with Leap?
5:52 PM PT
My apologies to neurojava for the inappropriate comment about Indian call center. What I mean to and should have said was “outsourced” call center.
1:33 PM PT
As long as T-Mobile is the survivor then I’m all for it. They have great phones, great technology and super customer service. The Hotspot@Home technology is awesome (still want the Blackberry but will continue to use my Nokia 6860 for now). T-Mobile is such a great company! I’d hate to see them go!
7:28 AM PT
Granted Sprint has some problems but there is no way in hell I will move over to GSM. I have not yet come across a GSM phone with the clarity of a Sprint or Verizon phone. Also T-mobile’s coverage sucks, service drops all over long island and Jersey. I do admit they have sexy phones but I use phones phone not admire them.
I think Sprint and Alltel will merge. They need to focus on one technology and a marriage with T-mobile would be another headache in addition to the many now.
9:14 AM PT
You do realize GSM/UMTS is cheaper to run than CDMA/IDEN/WIMAX! Here is my theories on what will happeb with this merger
For one, they will probably AX Wimax and Spin Nextel back off into a seperate cellphone carrier!
If they CHOOSE to NOT dump either CDMA or GSM! They may offer both networks! Possibly change the GSM network into Local only plans or Home network plans (no national) and if you want national you would have to get a CDMA Phone!
They may keep the networks seperate but start carrying these new CDMA/GSM integrated phones! Having these integrated phones, will insure that if you CANNOT Get a CDMA signal, it will bounce on GSM or vice versa, or let you choose which (CDMA/GSM) to bounce off of base on what gets you better signal and were.
These will pick the bigger of the 2 networks and phase out the smaller one, merging everyone over (like they did in cingulars take over of ATT), Hostilly force everyone onto the CINGULAR NETWORK!
The possibilites are endless. My guess
11:35 AM PT
I see a Vodafone play. Vodaphone has made it no secret that they want to own a U.S. wireless play out right. Easy to spin off the Verizon stakes, take advantage of the Euro vs. USD, become a true global player like T-Mobile, who by the way has over 120 million subs.
9:02 AM PT
Sprint is destroying by its employees. Mainly, all the meddle management from area-manager to all the sales people. I am a sub-dealer in Southeast Texas and found out most of the Sprint Rep. will play golf four days a week and work only Thursday ( half day), it’s a fact! Only way you will save the company by firing all these moron management people of Sprint.
7:24 PM PT
Apparently Frank is an idiot that doesn’t know what he is talking about. Sprint’s problem is all the 3rd party companies that put a front and act as concerned employees and they are not, but that’s off of the subject. Sprint and Verizon have the best network. I would be upset if Tmobile and Sprint merger becuase all the networks would get confusing. It’s just now making phones that can actually do both iden and cdma. I have not idea what would happen if you through gsm in the mix unless its to get rid of one of the networks eventually or making it really confusing and keep it all!
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