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Thread: T-Mobile settles the purchase of SHENTEL wireless assets

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    T-Mobile settles the purchase of SHENTEL wireless assets

    T-Mobile US paid $1.94 billion to acquire the SHENTEL's wireless assets and finally finalize the Sprint buyout. Please keep in mind that TMUS paid $1.94 billion for less than 1 million post paid customers plus other hard assets. Verizon will pay up to $6.9 billion for 21 million pre-paid customers: book of business is all they get.

    Who got the better deal?

    https://www.shentel.com/news/2021/ju...-mobile%20sale

    https://www.verizon.com/about/news/v...quire-tracfone
    Last edited by Serial Port; 07-02-2021 at 03:14 PM.

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    There's not much to discuss as to who "won?"

    TracFone acquisition is still up in the air.

    T-Mobile had to purchase or allow someone else to buy the Shentel wireless assets.
    Shentel did have a built out wireless network that now T-Mobile owns.

    Shentel clearly won.

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    Why is it that when someone posts a who is winning or losing thread 90% it's a T-Mobile supporter? Who cares. The deals have nothing to do with each other. T-Mobile pretty much HAD to buy Shentel. And they gain 1 mil customers they never would have had because lack of spectrum in that region. As far as Verizon, if they make $10 a month profit off of each of those 21 million the make their money back in less than 3 years. $7 a month profit it will take 4 years

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    Quote Originally Posted by Jack Hagar View Post
    Why is it that when someone posts a who is winning or losing thread 90% it's a T-Mobile supporter? Who cares. The deals have nothing to do with each other. T-Mobile pretty much HAD to buy Shentel. And they gain 1 mil customers they never would have had because lack of spectrum in that region. As far as Verizon, if they make $10 a month profit off of each of those 21 million the make their money back in less than 3 years. $7 a month profit it will take 4 years
    And, people need to remember tmobile is not only buying customers, but equipment and property too. The tracfone/verizon deal has very little assets other than phone numbers, since tracfone is just buying services from Verizon anyway. I'd say most people are on VZW when they buy a new tracfone, as they seem to have greatly reduced their reliance on other carriers. I don't think I knew of anyone that was on Tracfone or straight talk that used a phone that used trafone's sprint contract since at least 2012-2013. I think my cousin may have had a Galaxy S3 that used Sprint on tracfone. Regardless, the Verizon deal is a lot less of an undertaking than t-mobile is going through. Verizon already owns these customers, it's just more of a legal/trade formality than anything.

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    Quote Originally Posted by bubtub View Post
    And, people need to remember tmobile is not only buying customers, but equipment and property too. The tracfone/verizon deal has very little assets other than phone numbers, since tracfone is just buying services from Verizon anyway. I'd say most people are on VZW when they buy a new tracfone, as they seem to have greatly reduced their reliance on other carriers. I don't think I knew of anyone that was on Tracfone or straight talk that used a phone that used trafone's sprint contract since at least 2012-2013. I think my cousin may have had a Galaxy S3 that used Sprint on tracfone. Regardless, the Verizon deal is a lot less of an undertaking than t-mobile is going through. Verizon already owns these customers, it's just more of a legal/trade formality than anything.
    The TracFone deal isn't really about tracfones current customers. It's about Verizon having a brand to compete head on with T-Mobiles metro and at&t's cricket, which are, in the ballpark of 8-10b a quarter revenue makers for both companies.

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    Yeah, $1.97 billion for 1 million customers is not a great deal. But not having arbitrary and weird coverage holes in the Sprint coverage (and spectrum) likely makes it well worth it.

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    Quote Originally Posted by hwertz View Post
    Yeah, $1.97 billion for 1 million customers is not a great deal. But not having arbitrary and weird coverage holes in the Sprint coverage (and spectrum) likely makes it well worth it.

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    Virginia is a bit of a strategic state. Much of the state is rural, but it is also VERY politica/affluent, being directly adjacent to Washington DC. T-Mobile pretty much needs this ... it came down to how much were they willing to pay for it.
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    Yep Shentel had a very well built network in the area. I am glad T-Mobile was able to acquire them.


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    It should help TMobile quite a bit in those areas. It was a solid network when I was in those areas.

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    I used to have Sprint way back when I was in a Virginia area serviced by the Shentel's network. It was very decent and if I ventured outside Shentel's area the network was noticably worse. This was a good move by T-Mobile since their network was unbearable at that area at the time and I had to switch to Verizon for coverage and then to Sprint for lower costs.

    I am sure that T-Mobile's current network must be significantly better that it used to be but still it is very challenging area to cover and they can use the Shentel's assets to improve.

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    Quote Originally Posted by Theghostlad82 View Post
    The TracFone deal isn't really about tracfones current customers. It's about Verizon having a brand to compete head on with T-Mobiles metro and at&t's cricket, which are, in the ballpark of 8-10b a quarter revenue makers for both companies.
    Verizon Wireless has Visible Wireless which can compete with other carrier owned MVNO’s. This sounds more like Verizon Wireless eliminating a competitor so they can raise cellular prices.

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    Quote Originally Posted by techguru30 View Post
    Verizon Wireless has Visible Wireless which can compete with other carrier owned MVNO’s. This sounds more like Verizon Wireless eliminating a competitor so they can raise cellular prices.
    Visble has zero store presence and basically zero advertising. It is not a competitor to the metro and cricket prepaid brands TMobile and at&t offer. TracFone however does have retail presence and advertising. As far as TracFone being a "competitor" of Verizon, I doubt there are many people thoughtfully choosing between TracFone, and Verizon postpaid service. They attract different customer bases, just as metro does, just as cricket does. Obviously america movil feels the market for TracFone is dying as it is, and they want out. It's not like Verizon made them an insane offer. With big cable, the carrier owned prepaid brands, and other smaller mvno's (mint, red pocket, fi) the market will be fine without TracFone around as a stand alone.

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    Quote Originally Posted by Theghostlad82 View Post
    Obviously america movil feels the maket for TracFone is dying as it is, and they want out. It's not like Verizon made them an insane offer.
    + 1 for this. Nope, the offer was not crazy high and it's half cash, half common stock. What does the Slim family know that most other people don't?

    The 21 million customers tho. Even if 60% of those customers leave Tracfone for the other 2, that still leaves 8.4 million
    that stay with Verizon. Kinda like buying an annuity.

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    Quote Originally Posted by techguru30 View Post
    Verizon Wireless has Visible Wireless which can compete with other carrier owned MVNO’s. This sounds more like Verizon Wireless eliminating a competitor so they can raise cellular prices.
    Verizon's Visible is an interesting service, but it is experimental. It does not have the reliability that people expect compared to Cricket or Metro. Tracfone would be their flanker brand to compete with Cricket and Metro.

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    Quote Originally Posted by Greenmule View Post
    + 1 for this. Nope, the offer was not crazy high and it's half cash, half common stock. What does the Slim family know that most other people don't?

    The 21 million customers tho. Even if 60% of those customers leave Tracfone for the other 2, that still leaves 8.4 million
    that stay with Verizon. Kinda like buying an annuity.
    Yes, Verizon buying Tracfone is not a hostile takeover. Tracfone wants to sell for whatever reason. My guess was that at 81, Carlos Slim may want to simplify his life. He is already the richest person in Mexico and has several other profitable business ventures.

    I doubt that Verizon will lose anywhere near 60% of the Tracfone customers. 60% are already using Verizon with Tracfone.

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