T-Mobile, Sprint Together? Just Say No…Now

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?

Comments (20)

20 comments so far

March 7th, 2008
12:27 AM PT
jeff said:

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.

March 7th, 2008
2:55 AM PT
Mark Mercado said:

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.

March 7th, 2008
3:52 AM PT

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

March 7th, 2008
6:10 AM PT
Bashar Elrefai said:

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

March 7th, 2008
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?

March 7th, 2008
6:38 AM PT
Wayne said:

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.

March 7th, 2008
7:42 AM PT
Om Malik said:

@ 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.

March 7th, 2008
7:44 AM PT
Rick said:

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

March 7th, 2008
7:55 AM PT
mjgraves said:

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.

March 7th, 2008
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. [...]

March 7th, 2008
11:04 AM PT
GM said:

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.

March 7th, 2008
6:06 PM PT
neurojava said:

and what exactly is wrong with an Indian call center Jeff?

March 8th, 2008
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?

March 9th, 2008
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 [...]

March 10th, 2008
5:52 PM PT
jeff said:

My apologies to neurojava for the inappropriate comment about Indian call center. What I mean to and should have said was “outsourced” call center.

March 11th, 2008
1:33 PM PT
Randy Cooper said:

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!

March 12th, 2008
7:28 AM PT
Colin said:

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.

March 24th, 2008
9:14 AM PT
brandon said:

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!

  1. 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!

  2. 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.

  3. 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

May 5th, 2008
11:35 AM PT
T-Bone said:

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.

May 7th, 2008
9:02 AM PT
FRANK said:

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.

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