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Thread: Antitrust Chief Discusses Sprint, Doesn't Close Door on Deal with T-Mobile

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    Antitrust Chief Discusses Sprint, Doesn't Close Door on Deal with T-Mobile

    Ok we got both the FCC and the DOJ saying that going from four networks to three isn't an deal killer. This just increased the chances now of a merger approval by a bunch. President Trump is the wild card now in my opinion. The Senate doesn't get a vote but they can beg the DOJ or FCC if they want the deal killed.

    Antitrust Chief Discusses Sprint, Doesn't Close Door on Deal with T-Mobile

    "U.S. Justice Department antitrust chief Makan Delrahim, who is leading a review of the proposed $26.5 billion merger of T-Mobile US Inc. with Sprint Corp., says the elimination of one major competitor in wireless service isn’t necessarily a deal killer."

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    Makes it sound like a pretty good chance of passing but it's still early in the process so anything can happen at this point

    I think in the long run it most likely passes but it won't be a walk in the park getting to that point

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    Really if four networks are good then six networks are better. If AT&T and Verizon was split in half each to form four networks that would make T-Mobile #5 and Sprint #6. Anyone that is in favor of four networks and thinks that will create more price competition, then six networks would create even more competition. Verizon and AT&T doesn't feel any competition now from T-Mobile or Sprint since they haven't started a price war for customers. You don't even see Verizon or AT&T trying to market against the other #1 or #2 network.

    Until both T-Mobile and Sprint has a equal quality national network neither Verizon or AT&T will feel that the # 3 and #4 networks are real competition. It is not lost on me the Gov gave AT&T about $8 Billion in 700 Mhz spectrum for First Net that AT&T will share that First Net spectrum with their regular customers base. Both AT&T and Verizon got free spectrum from the Gov in the past to start up cell networks. The Gov has already given AT&T and Verizon advantages over the competition. The only way T-Mobile and Sprint will be real competition is to have a equal network nationwide that is financially solid to compete head to head.

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    "The law and market economics will be the crucial factors, Delrahim said Friday, answering whether the U.S. would now allow the number of major players in mobile phone service to shrink to three from four now."

    This is the more important quote from that article. As I said in other forum on this merger, TMobile is going to have to argue that the cable industry and other mvno's are enough to be considered competition in the market that removing Sprint won't be harmful. That's the whole case they have to argue to the DOJ, they make their case, they win, they dont, they lose. That's what this whole merger will boil down to. Can TMobile convince the DOJ that the mvno market is enough to compensate for the loss of Sprint as a competitor. As the article also states

    "Sprint and T-Mobile also argue the market is bigger than four companies thanks to new competition from cable companies like Comcast Corp."

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    More media opinions about the merger that they see going from Four networks to Three won't be a deal killer.

    Sure Seems Like Trump's DOJ Has No Interest In Blocking the T-Mobile-Sprint Merger

    "Executives at AT&T have previously said the company won’t contest the merger, and Verizon’s CEO Lowell McAdam has gone on record multiple times to say some variation of “We don’t care” regarding T-Mobile and Sprint. It looks like American consumers are going to have to get ready for the big four to drop to the big three."

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    "Sure Seems Like Trump's DOJ Has No Interest In Blocking the T-Mobile-Sprint Merger"

    *"it looks like President Trump’s Department of Justice is just fine with that. The government’s top antitrust official hinted Friday that shrinking the market to just three major service providers likely won’t an issue."

    Disagree strongly with the title of this article and disagree somewhat with this statement. That's not what Delrahim said, what he did was answer a question without really saying anything we already didn't know. The DOJ had already said they would be open to listening to TMobile and Sprint and let them present their case. All Delrahim did was confirm that in his statements. He didn't tip his hand one way or another. It's great news for TMobile that they are willing to listen and let them present their case no doubt, but they still have to make their case, but presenting it to a justice department that is at least open to the possibility of a merger is better than where they were the last time Sprint tried to buy TMobile. As I've said all along, if they can make the case that the cable industry and other mvno's take up the space that removing Sprint will create, they win. They fail to make that case, they lose. My opinion hasn't changed, I think they make their case, just not going to be easy.

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    Quote Originally Posted by themanhimself View Post
    Makes it sound like a pretty good chance of passing but it's still early in the process so anything can happen at this point

    I think in the long run it most likely passes but it won't be a walk in the park getting to that point
    Yep I feel very confident now that the we heard from both the DOJ and FCC that moving from four carriers to three isn't a deal killing issue. Top that off with AT&T and Verizon won't interfere with the merger. It's not a slam dunk by any means but it sure has moved way past 50% for a merger approval with that one major issue out of the way. Still see President Trump as the Wild Card. This will put more pressure on the other networks... including the TV distribution and IoT networks... which is something I think Trump can get on board with.

    If this merger goes through John Legere is going to kick some other networks butts with 5G NR and then run out an rip up the TV markets as well. It will be a happy day when I call Comcast and tell them "Your FIRED". Someone will have to buy Dish Networks after John Legere rides out after the TV distribution networks. You can just hear the Verizon and AT&T fans that are just trying to pick a fight about the merger since they don't want Sprint/T-Mobile getting better and growing faster.
    Last edited by shilohcane; 06-03-2018 at 12:40 PM.

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    This is just my opinion, but a stronger combined sprint/T-mobile will be more competitive to ATT and Verizon so they might actually start lowering prices to compete or they lose out since T-Mobile started making waves back in 2013? 14? they have added speed and increased where t mobile phones pick up signal, for example I took a cross country trip in 2016, I had t mobile phone but picked up a cheap verizon prepaid for those long rural back roads where I suspected I would lose service, turns out the verizon phone was the one to lose service on those long back roads, for about 100 or so miles all combined my prepaid verizon had no service

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    Quote Originally Posted by Black69Camaro View Post
    This is just my opinion, but a stronger combined sprint/T-mobile will be more competitive to ATT and Verizon so they might actually start lowering prices to compete or they lose out since T-Mobile started making waves back in 2013? 14? they have added speed and increased where t mobile phones pick up signal, for example I took a cross country trip in 2016, I had t mobile phone but picked up a cheap verizon prepaid for those long rural back roads where I suspected I would lose service, turns out the verizon phone was the one to lose service on those long back roads, for about 100 or so miles all combined my prepaid verizon had no service
    The fact is that all this time, tmobile wasn't really competing with Sprint- they were competing with the big two. tmobile prices aren't cheaper than Sprint but they were cheaper than the big two and the big two HAD to match tmobile in features and price- well, for the most part. So the merger changes nothing in the competition landscape- they will still compete with the big two only now they have more resources to do so. The market will hence be MORE competitive with the merger.

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    I thought I remember reading a few weeks ago that neither Verizon or ATT were going to object to this merger. It makes me suspicious. If this really makes Tmobile a mobile competitor and powerhouse why wouldn't ATT and Verizon try and stop it?

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    This is good news. My belief is the merger will happen, and it'll happen quickly.

    As I've said before, those who argue about the need for a fourth carrier (specifically Sprint) for the sake of competition... lack the ability to ponder the 5G landscape of the future and the battle that will take place within all of the converging (and emerging) markets.

    After the Sprint/Tmo merger there's going to be more competition in the carrier/provider game than we've seen In a VERY long time.

    Sent from my Z982 using HoFo mobile app

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    Quote Originally Posted by mvaar View Post
    The fact is that all this time, tmobile wasn't really competing with Sprint- they were competing with the big two. tmobile prices aren't cheaper than Sprint but they were cheaper than the big two and the big two HAD to match tmobile in features and price- well, for the most part. So the merger changes nothing in the competition landscape- they will still compete with the big two only now they have more resources to do so. The market will hence be MORE competitive with the merger.
    And elsewhere I see reports that T-Mobile's growth has come at the expense of Sprint.
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    Quote Originally Posted by obeythelaw View Post
    I thought I remember reading a few weeks ago that neither Verizon or ATT were going to object to this merger. It makes me suspicious. If this really makes Tmobile a mobile competitor and powerhouse why wouldn't ATT and Verizon try and stop it?

    Maybe because it makes them look bad by competing not through price/value, but by filing frivolous legal actions and complaints?

    Well, it would, to me.

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    Quote Originally Posted by obeythelaw View Post
    I thought I remember reading a few weeks ago that neither Verizon or ATT were going to object to this merger. It makes me suspicious. If this really makes Tmobile a mobile competitor and powerhouse why wouldn't ATT and Verizon try and stop it?
    Because they want to act like it doesn't bother them even if it does. If they started protesting it, then people might say, "Oh a combined T-Mobile/Sprint really would be good competition for AT&T and Verizon" and that might make the merger more likely to get approved. So they have to bite their tongue and let their lobbyists behind the scenes do their work to knock it off the rails.

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    Quote Originally Posted by jet1000 View Post
    Because they want to act like it doesn't bother them even if it does. If they started protesting it, then people might say, "Oh a combined T-Mobile/Sprint really would be good competition for AT&T and Verizon" and that might make the merger more likely to get approved. So they have to bite their tongue and let their lobbyists behind the scenes do their work to knock it off the rails.
    Really think people outside of the tech forums really care about this merger huh? Yea, millions may revolt if they said that, but in the real world likely nobody outside of tech forums would care one bit.

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