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Sprint No Longer Sure About T-Mobile Bid

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Replying to:  Surprised and Clueless by Andras888   Feb 10, 2014, 10:53 AM

Re: Surprised and Clueless

by WiWavelength    Feb 10, 2014, 11:57 AM

Andras888 said:
"... they were surprised by the level of skepticism for the deal." This shows how clueless they are about their own field.


No, if you think that Hesse and Son are "clueless," then it might be you who is "clueless." Seriously, you need to have a more informed perspective than this.

Hesse and Son are right, and T-Mobile management agrees. It is an almost incontrovertible fact that Sprint and T-Mobile individually will never be able to achieve the scale to compete effectively with the duopoly of VZW and AT&T -- both of which achieved their scale through mergers, by the way.

The people who have the biggest problem with this seem to be those with an almost emotional attachment to T-Mobile. They think that T-Mobile giving away the farm and padding its subscriber numbers are endlessly sustainable. But they cannot see the forest for the trees. T-Mobile is cutting its margins to primp itself up for sale.

In the end, the sale will happen -- to SoftBank, Dish, Vodafone, America Movil, or some other player. If not, the rooster will come home to roost, meaning that T-Mobile's cut rate strategies will hurt it long term. One example of that would be T-Mobile's downright dreadful rural footprint will still not see LTE or even W-CDMA upgrades for many more years, if ever.

AJ

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