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Summary:

[qi:004] 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 […]

[qi:004] 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?

  1. 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.

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  2. Mark Mercado Friday, March 7, 2008

    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.

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  3. [...] Malik pretty much nails the challenge that such an acquisition would have.  Sprint’s customer base would do [...]

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  4. Bashar Elrefai Friday, March 7, 2008

    Five, if you count T-Mobile’s move to UMTS

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  5. 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?

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  6. 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.

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  7. @ 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.

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  8. Nascar would have to change the name again. The T-Mobile Cup. Ugh.

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  9. 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.

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  10. [...] & 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. [...]

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