Sprint, Nextel Announce Merger
BOLD PREDICTION!! Cingular Absorbs T-Mobile Within The Next Six Months
It's the natural order of survive and conquer. Only the strongest and richest survive.
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I do not think that would happen. T-mobile runs mostly off of Cingular and AT&T. The only reason T-mobile offers so much is because they do not have much of a network. It may seem like you "Get More", but in all reality, their network is not the best.
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mannycoimbre said:
I do not think that would happen. T-mobile runs mostly off of Cingular and AT&T. The only reason T-mobile offers so much is because they do not have much of a network.blockquote>
Absolutely incorrect. T-Mobile operates its own network in the vast majority of the markets where it offers service, which is a big reason why Cingular would probably not be interested in it. They might want to consider buying T-Mobile just to get its spectrum and customers, but then the government will not allow it, since this would create a single national GSM monopoly.
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The government isn't deciding monopolies on the type of technology a provider uses. The only way to monopolize the wireless industry is to hold so much percentage of market-share of the ENTIRE industry. Be it CDMA, GSM, iDEN, or any other technology.
Because Nextel is the only company using iDEN it is considered a monopoly? No, it is not.
Because Nextel is the only company using iDEN it is considered a monopoly? No, it is not.
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Yes, with spectrum being considered it is highly unlikely that Cingular would be allowed to absorb T-Mobile. However, Sprint-Nextel seems to have their heart set on keeping the 100mhz of combined spectrum that they will have in several markets. I don't know if the FCC and DoJ will allow this, but if they did, I think it would hardly be fair to not allow Cingular another 30mhz of spectrum in those markets that they were limited to 70mhz. Especially since CDMA utilizes bandwidth better than GSM.
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t mobile is 2yrs away from 3g and its network would be no gain for cingular...they cant compete and theres nothing to gain except the spectrum which cingular doesnt need. tmobile has few rural areas to help cingular. no point. they will fall off on thier own. i mean if you think theyd by tmoble why not crickett or metropcs....lol its like buying a second engine with your brand new car. no need
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You forget that T-Mobile, like Sprint owns licenses in areas that Cingular does not. In comparison to T-Mobile Cingular is a little boy. T-Mobile uses GSM to its limited capabilities even more than does Cingular.
T-Mobile is to the GSM world what Sprint is to the CDMA world, a better and more innovative use of the technology than the huge carrier it competes with. (Cingular for GSM and Verizon for CDMA) I believe your analogy of a new car and a second engine is best reversed where a worldwide wireless carrier has no need of a small national carrier.
Cingular, Verizon and T-Mobile people have cause for concern in this area, Sprint Nextel has more bandwidth than they know what to do with and for us Sprint people we know what that means.
T-Mobile is to the GSM world what Sprint is to the CDMA world, a better and more innovative use of the technology than the huge carrier it competes with. (Cingular for GSM and Verizon for CDMA) I believe your analogy of a new car and a second engine is best reversed where a worldwide wireless carrier has no need of a small national carrier.
Cingular, Verizon and T-Mobile people have cause for concern in this area, Sprint Nextel has more bandwidth than they know what to do with and for us Sprint people we know what that means.
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Since you're talking antitrust law, I thought I'd jump in and address a couple of your points. This should not be construed as legal advice. First, the FTC won't block a merger for a potential antitrust violation unless two criteria are satisfied: first, monopoly power and second, monopolization or attempted monopolization. In other words, the government separates the power to affect market price from illegal behavior using this power. Your post incorrectly conflates the two issues.
Determining monopoly power involves much more than looking at market share. It is possible to have a monopoly (which is perfectly legal) with a particular percentage of one market and not to have a monopoly with the same percentage of a different market. Befor...
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Determining monopoly power involves much more than looking at market share. It is possible to have a monopoly (which is perfectly legal) with a particular percentage of one market and not to have a monopoly with the same percentage of a different market. Befor...
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My point was that it would be difficult to deny an attempted buyout of T-Mobile by Cingular based on the sole fact that they are GSM. Nextel is the only U.S. provider using iDEN so it would be VERY hard for the government to just flat out say no to Cingular with the reasoning that they would be the only national GSM provider.
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RUFF1415 said:
My point was that it would be difficult to deny an attempted buyout of T-Mobile by Cingular based on the sole fact that they are GSM. Nextel is the only U.S. provider using iDEN so it would be VERY hard for the government to just flat out say no to Cingular with the reasoning that they would be the only national GSM provider.
Well, Nextel didn't become the only iDEN operator by buying out all the others and thus eliminating all competition, AFAIK.
You certainly have a point, and I'm not trying to argue. Nonetheless, the idea of a single GSM operator to choose from is not particularly appealing to me as a consumer.
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I very much agree, although I personally would never go with T-Mobile. But its always good to have options.
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I was thinking the same thing. T Mobiles market is all agreements with them anyways. I say take the money and run. Being on the retail side of things i say the fewer the companies the simpler for the comsumers who are usually confused anyways.
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DON'T THINK SO. I HEAR T-MOBLIE IS BIGGER WORLDWIDE. UNLESS THEY SELL OFF THE US END OF IT.
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That is very true. If Cingular were to buy them out as well, nothing would change network wise.
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i would be probably the smoothest merger in history they would just have to make the new 850 phones only
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Why would T-Mobile worldwide sell off a profitable business with growth potential?
Where are SBC and Bell South going to find the money to make such a purchase after writing a check for 41 billion dollars. Their only recourse would be an IPO which is what started ATTWS on the downhill slide.
No I think Cingular is vulnerable to being bought out by a European or Asian entity.
Especially when SBC and Bell South stockholders get tired of their shares underperforming while their company adds more debt.
Where are SBC and Bell South going to find the money to make such a purchase after writing a check for 41 billion dollars. Their only recourse would be an IPO which is what started ATTWS on the downhill slide.
No I think Cingular is vulnerable to being bought out by a European or Asian entity.
Especially when SBC and Bell South stockholders get tired of their shares underperforming while their company adds more debt.
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it's unlikely t-mobile international has any interest in selling off its US unit, a minimum investment in spectrum and partnerships has kept a foothold in the US for them. they are one of the few international carriers who can offer global roaming, including north america to their customers. (although vodafone can offer roaming in japan now, which is pretty cool) it's more likely that vodafone would get rid of verizon than t-mo would ditch its US network, don't forget voda was bidding against cingular for att.
personally, I think it would be hilarious if someone like mmo2 or orange would try to buy out the new cingular, or merge with them.
personally, I think it would be hilarious if someone like mmo2 or orange would try to buy out the new cingular, or merge with them.
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Two problems with your bold prediction:
1) The FCC will not allow Cingular to have any more spectrum. They were forced to sell off licenses where they would own more than 70MHZ in any market.
2) T-Mobile USA is a part of T-Mobile worldwide, a much larger company than Cingular. Kind of like US Cellular buying Verizon, they just don't have the money.
It would be more likely to see T-Mobile or Vodafone buy Cingular.
Plus Cingular has all they can handle right now with their acquisition of ATTWS. They will spend the next several years putting the two networks into one and building the former ATTWS markets to Cingulr standards.
1) The FCC will not allow Cingular to have any more spectrum. They were forced to sell off licenses where they would own more than 70MHZ in any market.
2) T-Mobile USA is a part of T-Mobile worldwide, a much larger company than Cingular. Kind of like US Cellular buying Verizon, they just don't have the money.
It would be more likely to see T-Mobile or Vodafone buy Cingular.
Plus Cingular has all they can handle right now with their acquisition of ATTWS. They will spend the next several years putting the two networks into one and building the former ATTWS markets to Cingulr standards.
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Yeah, I think it would be more likely, although still not very likely, that Deutsche Telekom AG (T-Mobile's parent company) would buy out Cingular and make it T-Mobile's bitch.
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JDigital said:In other words, that "bold" prediction becomes "laughable misinformation".
Yeah, I think it would be more likely, although still not very likely, that Deutsche Telekom AG (T-Mobile's parent company) would buy out Cingular and make it T-Mobile's bitch.
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Wait I just realized something. I know for a fact Vodaphone owns 45% of VZW, do they not also own at least a portion of T-Mobile as well? Perhaps this is all falling into the lap of someone else. T-Mobile is too large for Cingular to buy out and if anything i see T-Mobile will be taking over Cingular, therefore if Vodaphone has stake in T-Mobile, we could very easily see a "big three" or CDMA vs. GSM power struggle in the U.S.. Possibly just conspiracy theory, but if it were true we could start to see some big things happen. Also, keep in mind Cingular has announced their plan to start rolling out true 3g(umts)service, which works on 2100mhz CDMA technology, where T-Mobile has said they are about 2 ears behind. Think about how attractve this...
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Kenny G said:...
Wait I just realized something. I know for a fact Vodaphone owns 45% of VZW, do they not also own at least a portion of T-Mobile as well? Perhaps this is all falling into the lap of someone else. T-Mobile is too large for Cingular to buy out and if anything i see T-Mobile will be taking over Cingular, therefore if Vodaphone has stake in T-Mobile, we could very easily see a "big three" or CDMA vs. GSM power struggle in the U.S.. Possibly just conspiracy theory, but if it were true we could start to see some big things happen. Also, keep in mind Cingular has announced their plan to start rolling out true 3g(umts)service, which works on 2100mhz CDMA technology, where T-Mobile has said they are about 2 ears behi
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No,
T-Mobile is doing very well, especially in the customer base that values cool handsets over network. And I am not throwing stones at their network, it just is not as big as others nor as powerful as others.
T-Mobile is doing very well, especially in the customer base that values cool handsets over network. And I am not throwing stones at their network, it just is not as big as others nor as powerful as others.
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SPCSVZWJeff said:
No,
T-Mobile is doing very well, especially in the customer base that values cool handsets over network. And I am not throwing stones at their network, it just is not as big as others nor as powerful as others.
Are you implying that T-Mobile USA has cool handsets? You've got to be kidding. What sets them apart is the cheapest airtime.
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DocAlchemy said:
It's the natural order of survive and conquer. Only the strongest and richest survive.
The very idea of this is proposterous. As was stated in an earlier post, it's worse than "bold," closer to ridiculous. No offense meant. T-Mobile would never give up their foothold in the US market (albeit a small one with < 16 million customers). They're just happy to be here. And also as stated before, T-Mobile is a Golliath compared to Cingular. T-Mobile has over 65 million subscribers in Europe.
If, as you say, only the strongest and richest survive, then T-mobile will be the one to survive.
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This forum is closed.
