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Tag: sprint

  • Sprint/T-Mobile deal may get FCC approval

    Sprint/T-Mobile deal may get FCC approval

    In a move that was looking increasingly unlikely over the past few months, FCC Chairman Ajit Pai has signaled that he will recommend that Sprint/T-Mobile merger be approved. The $26.5 billion mergers aren’t necessarily out of the woods yet as no vote has been taken and the other four commissioners have not been heard from yet and there is still the DOJ to persuade. But nevertheless, the deal has crossed a threshold and may now be back on track to close in the coming months.

    In order to get past the FCC’s concerns, Sprint and T-Mobile had to make a few concessions. The Boost prepaid business will be sold off, a 5G network will be built out over 3 years, and pricing will not be raised during that construction. Promises were made to ensure ‘robust’ infrastructure in rural areas and to work on in-home broadband offerings.

    The markets liked the move, and all four US wireless giants saw their stocks surge in response, Sprint and T-Mobile for obvious reasons and Verizon and AT&T due to the prospect of a reduction in the competition overall. Infrastructure providers, however, saw the opposite given the consolidation synergies that will inevitably come at their expense.

    The news comes just over a year since the deal was announced after years of dancing. I think we’re all tired of the dance at this point. I wonder though if a tweet will send things the other way in the next 24 hours.

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  • US DOJ likely to reject T-Mobile and Sprint merger

    US DOJ likely to reject T-Mobile and Sprint merger

    One year after US operators T-Mobile and Sprint finally finished the preliminaries and announced a merger, the proposed deal is under fire. Few ever thought the deal would get through regulators unscathed, but now we’re finally getting to the details.

    DOJ has told the two carriers that it is ‘unlikely’ to approve the deal as currently structured, or at least people at the DOJ involved in the approval did, as this doesn’t appear to be a formal thing. The news adds to a growing list of regulatory objections from the states and from the FCC.

    T-Mobile CEO John Legere is disputing the reports, and there is certainly sufficient motivation to adjust the deal enough to push it through. However, there is enough doubt right now that the markets didn’t take it well and sent the stock of both companies falling.

    Perhaps like AT&T did for the Time Warner deal they will at some point take things to the courts.

  • T-Mobile and Sprint announce merger plans

    T-Mobile and Sprint announce merger plans

    US operators T-Mobile US and Sprint have announced an agreement to merge in an all-stock combination. The combined company will be named T-Mobile, will initially serve some 127 million customers, and will be led by current T-Mobile US CEO John Legere.

    The deal is an important step toward 5G for both companies, which were facing some big capex bills if they tried to do it alone. While the integration of the two companies’ networks will be quite a task, the fact that they can combine their 5G buildout efforts at an earlier stage will surely help a lot.

    Well, it will if the deal gets approved relatively quickly. So now that the companies have made up their minds, all eyes will turn toward the Trump administration’s regulators and, umm, twitter. The last time T-Mobile US and Sprint were close to a deal, regulators threw ice water on the concept. There are reasons to expect the situation to be different this time, but there is plenty of uncertainty in just what the response will be.

    As for the deal, each Sprint shareholder will receive 0.10256 T-Mobile share per Sprint share, which puts the total enterprise value of the combined company at $146 billion. DT’s share of the company will be about 42%, while Japan’s Softbank would own 27%, the rest being publicly traded. Synergies of about $6 billion in annual cost savings are anticipated.

    One sector that probably would in some ways have preferred to not have a deal is the metro fiber infrastructure space, which would understandably like to build out four 5G backhaul networks rather than three. But on the other hand, what they might see is one effort start earlier with the funding to do it right rather than two efforts trailing the field and cutting corners.

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  • Softbank 9m17 Profit Grows 20 Procent

    Softbank 9m17 Profit Grows 20 Procent

    Japan’s SoftBank has reported a solid 20% increase in net profit for the nine  months ending in December to 1.01 trillion yen ($9.35 billion), partly as a result of cost cutting at US subsidiary Sprint.

    Net sales for the first nine months of SoftBank’s financial year grew 3.5% to 6.58 trillion yen, with revenue increasing across all the company’s market segments.

    Domestic telecoms revenue grew slightly to 2.406 trillion yen despite a 1.4% decrease in telecoms service revenue to 1.8 trillion yen.

    Mobile service revenue fell 5% to 1.36 trillion yen, but broadband revenue improved 23.2% to 240.02 billion yen and fixed telecommunications revenue edged up 0.5% to 200.86 billion yen.

    Smartphone net additions for the nine-month period grew to 1.13 million, with the operator’s total mobile customer base growing to just under 33 million, while churn fell slightly to 0.84%.

    SoftBank’s FTTH subscriber base meanwhile reached 4.67 million, up from 3.14 million as of the end of 2016.

    Net sales at Sprint increased 2.6% to 2.72 trillion yen, while the unit’s adjusted ebitda grew 19.1% to 938.8 trillion won on the back of cost reduction efforts that resulted in nearly $1 billion in savings. Net sales from Yahoo Japan increased from 630.8 billion yen to 651.5 billion yen.

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