Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

On Force.com
Mobile Tech
Real-time info services with Neustar
Average Rating:
Rate this article:  
Sprint Reportedly Mulls Counterbid for MetroPCS To Thwart T-Mobile
Sprint Reportedly Mulls Counterbid for MetroPCS To Thwart T-Mobile

By Adam Dickter
October 4, 2012 2:34PM

    Bookmark and Share
In any wireless merger, the issue is perhaps less about gaining subscribers as gaining crucial wireless spectrum to allow building out mobile networks. T-Mobile would benefit from spectrum from MetroPCS if a merger occurs. T-Mobile has offered $1.5 billion to merge with MetroPCS, but Sprint Nextel may nake a counteroffer.
 



Struggling fourth-place wireless carrier T-Mobile could have a lot of negotiation on its hands to keep its deal with MetroPCS alive.

No sooner did we learn that Texas-based no-contract carrier MetroPCS Communications is in talks to merge with Deutsche Telekom AG-owned T-Mobile, than third-place carrier Sprint Nextel let it be known that it just might have a counterbid.

T-Mobile, of course, was set to be acquired by AT&T in a high-profile, multibillion-dollar merger deal last year that would have created perhaps the biggest wireless carrier in the nation, surpassing Verizon Wireless.

Stopped Cold

But federal regulators had other plans, putting the kibosh on the deal on grounds that it would have too much of a drastic impact on competition and result in higher prices.

On Thursday Bloomberg News, citing unnamed sources, said Overland Park, Kansas-based Sprint Nextel was in the process of formulating the counteroffer and would decide by next week whether to proceed.

That news sent shares of Sprint tumbling, The New York Times said, while MetroPCS shares rebounded in early trading on news of the proposed merger.

"A marriage of the fourth- and fifth-largest U.S. carriers is a big deal and a higher competitive threat to Sprint, as it could make T-Mobile as formidable and closer to Sprint in terms of [subscribers]," said Neil Shah, a senior global wireless practice analyst at Strategy Analytics.

He added that it's important for Sprint to head off this threat.

"T-Mobile acquiring MetroPCS will also improve its subscriber mix in terms of postpaid vs. prepaid similar to Sprint," Shah told us. "For Sprint this means a lost opportunity to its nearest competitor, and hence the carrier will try to woo away MetroPCS from T-Mobile in every possible way."

In any wireless merger, the issue is perhaps less about gaining subscribers as gaining crucial wireless spectrum to allow building out mobile networks to keep up with rising demand, especially for surging data from smartphones using long-term evolution 4G speed.

T-Mobile would benefit from spectrum from MetroPCS in constrained markets, and their combined position would allow for 20x20 megahertz LTE deployments in many markets, according to Strategy Analytics.

Less Federal Scrutiny Seen

The merger plans announced Oct. 3 by MetroPCS and Deutsche Telekom AG call for a $1.5 billion payment to MetroPCS, with the deal closing in the first half of next year, and the new company maintaining the T-Mobile name.

Shah said the merger would not attract the same regulatory scrutiny that killed the AT&T deal.

"The Department of Justice calculates using a simple formula called Herfindahl-Hirschman Index as a measure of market concentration," he said. "The TMo-Metro merger...doesn't off-balance the market-concentration levels in terms of significant shift in the resulting market share or market power.

However, in sub-markets T-Mobile may have to swap some assets to weaker competition to win approval, he said.
 

Tell Us What You Think
Comment:

Name:



Your Next Generation Data Center Is Here! Vblock™ Systems: the world's most advanced converged infrastructure are built on the Cisco Unified Computing System with Intel® Xeon® processors. Vblock™ Systems deliver extraordinary time to market, ROI and TCO, and flexibility to meet your continually changing demands with 5X faster deployment, 96% less downtime, and 1/2 the cost. Click here to learn more.


 Mobile Tech
1.   Cortana Fills Windows Phone Gap
2.   Galaxy S5 Phone: Less Can Be More
3.   Beware: Facebook Shares Your Locale
4.   Android Gets Chrome Remote Desktop
5.   Amazon 3D Smartphone Pics Leaked


advertisement
BlackBerry Drops T-Mobile After Spat
Moving on to other carriers after snub.
Average Rating:
Cortana Fills Windows Phone Gap
Siri-like virtual assistant has promise.
Average Rating:
Galaxy S5 Phone: Less Can Be More
Most formidable iPhone competitor yet.
Average Rating:


advertisement


 Random Bytes
Beware: Facebook Shares Your Locale Android Gets Chrome Remote Desktop
Cortana Fills Windows Phone Gap Amazon 3D Smartphone Pics Leaked
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Heartbleed Could Cost Millions, Could Have Been Prevented
Early estimates of Heartbleed’s cost to enterprises are running in the millions. The reason: revoking all the SSL certificates the bug exposed will come at a very hefty price. Some say it all could have been avoided.
 
Michaels Says Nearly 3M Credit, Debit Cards Breached
Arts and crafts retail giant Michaels Stores has confirmed that a data breach at its POS terminals from May 2013 to Jan. 2014 may have exposed nearly 3 million customer credit and debit cards.
 
Google's Street View Software Unravels CAPTCHAs
The latest software Google uses for its Street View cars to read street numbers in images for Google Maps works so well that it also solves CAPTCHAs, those puzzles designed to defeat bots.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
The innovative headpiece may find its niche in markets where hands-free access to data can be a big advantage. Glass experiments for doctors are already under way, with some promising results.
 

Mobile Technology Spotlight
Review: Siri-Like Cortana Fills Windows Phone Gap
With the new Cortana virtual assistant, Windows catches up with Apple's iOS and Google's Android in a major way, taking some of the best parts of Apple's and Google's virtual assistants, with new tools too.
 
With Galaxy S5, Samsung Proves Less Can Be More
Samsung has produced the most formidable rival yet to the iPhone 5s: the Galaxy S5. The device is the fifth edition of the company's successful line of Galaxy S smartphones, and shows less can be more.
 
Facebook Rolls Out Potentially Intrusive Location-Sharing
Looking for friends? Facebook users in the U.S. will soon be able to see which of their friends are nearby, using a smartphone's GPS. Could be a cool feature in some cases, or way too much information.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.