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T-Mobile To Buy SunCom

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Took Longer then I thought

wombough

Sep 17, 2007, 2:37 AM
When Cingular bought ATT that left suncom on its own. I figured tmobile would have bought them earlier as they have no coverage in NC and most of SC. I think its great for tmobile to be able to move into two hole states without haveing to build out a network in both states.
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supremecellgod

Sep 17, 2007, 2:50 AM
I agree I thought it would have happened sooner. I would guess that the cost of a roaming agreement was far more cost effective then to just buy them out. All the regional "little guys" are being scooped up left and right. I'm just glad TM finally got into the action.
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PDXMatt

Sep 17, 2007, 3:02 AM
I was just thinking "About time".
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krum303

Sep 17, 2007, 4:01 AM
Me too! 😁 They own some spectrum in the Virgin Islands too!
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wombough

Sep 17, 2007, 8:17 AM
and peurto rico!
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nextel18

Sep 17, 2007, 5:06 AM
Yea that is very true. I think it was about time for them to purchase a company. I don’t think that SunCom is the ideal candidate though, because I think there are others.
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wombough

Sep 17, 2007, 8:18 AM
there are no others in that area. They bought powertell that is the only reason they are in sc right now. Even though its only like one county.
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nextel18

Sep 17, 2007, 8:24 AM
There is a reason why no one else is in that area.
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wombough

Sep 17, 2007, 8:26 AM
no they were all bought up! When I got there in 1999 there were a few in that area. And they were gobbled up. There is only one local carrier I can think of in that area and its Hargray. They operate a cdma network and has recently made the move into wireline and cable in the area. They offer unlimited calling for 29.99. however their network is overloaded and you can barly make a call on their prepaid service and at times in the day can't on post paid!
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nextel18

Sep 17, 2007, 8:33 AM
That’s the issue. I posted to you on the other forum that Cingular expanded into NC. Verizon also buys spectrum in NC.

I would have rather T-mobile look at Metro and/or Leap. That would do well with them since they both over low cost.
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PDXMatt

Sep 17, 2007, 9:32 AM
Leap and Metro are both CDMA carriers. I don't think TMo would be interested.
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wombough

Sep 17, 2007, 9:38 AM
damn I just said that and didn't read your post first lol.
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PDXMatt

Sep 17, 2007, 11:29 AM
Yeah. the layout of this forum is confusing to me. I wish they would go vBulletin.
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nextel18

Sep 17, 2007, 10:16 AM
I know but they could add new spectrum to do a CDMA/GSM type device and cater to their markets but also gain their subscribers but more importantly their infrastructure. They could also, depending on the spectrum, fine tune it and turn it into advanced technology spectrum. that argument I don’t buy because Sprint bought out Nextel and they both have incomputable networks until the networks/spectrum are tuned to be able to use it.
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wombough

Sep 17, 2007, 9:37 AM
but both of them are cdma it would cost allot to convert!
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nextel18

Sep 17, 2007, 10:31 AM
It’s going to cost money either way. Whether they upgrade their SunCom’s networks, and get rid of their operations or buy out Leap or PCS.
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wombough

Sep 17, 2007, 10:36 AM
they don't have to upgrade much its still GSM. And Suncom has edge. The 3g will most likly be deployed with the new spectum.
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nextel18

Sep 17, 2007, 11:01 AM
The point is that they have to upgrade- it still costs. T-mobile’s overall capex is going to increase rapidly as they launch their 3G network and expand their tower base. To upgrade from GSM to EDGE is still $1.50 per pop. I do not remember how much it costs to go from EDGE to UMTS/HSPA, but they still have to buy spectrum, modify the cell sites, and install new base stations. If you want to know to know how much it costs check out Cingular’s costs to launch their 3G network, and they have bigger pops than T-mobile.
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wombough

Sep 17, 2007, 11:03 AM
i know that. They have to upgrade everywhere to 3g not just suncoms area. Suncom has edge so they don't have to upgrade that nor should they have to upgrade the GSM voice. This is not tmobiles first buyout. They bought around 5 companies already so they are used to it!
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nextel18

Sep 17, 2007, 11:07 AM
See that is the problem. If they are going to buy out Suncom they would need to overall their all operations and then launch their 3G network in those areas or else what is the point of even buying the company at all? Roaming agreements would be better, especially given their success or lack thereof. (Suncom’s) the point of purchasing is also about future prospects as well as their assets. If they are just going to use this buyout just for an expansion in the NC areas and not upgrade it’s a waste. T-mobile whenever they buy companies they grow, and that is what they need.
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wombough

Sep 17, 2007, 11:34 AM
They will grow in those areas. I have no doubt about it. they expanded not only in the states but two territories too. Your telling me that price isn't worth it? I think it is!
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nextel18

Sep 17, 2007, 11:40 AM
I think it is a mixed picture for me. the price adjusted for synergies is not bad for a company that does have 1.1 million customers and spectrum and infrastructure already, but operationally and financially Suncom is horrible. Moreover, T-mobile and DT have performed very well and has class while Suncom doesn’t. I already gave the valuation prices pre synergies and post synergies so that is already very cheap. i think the only way that T-mobile can make Suncom survive is to take every employee and get rid of them as well as management and to re-adjust their tower portfolio and brand image. If not, I think they will fail miserable especially since Suncom to this date has.
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wombough

Sep 17, 2007, 11:43 AM
they will they are two different companies and every one that tmobile has bought they got rid of every aspect about them. And did it quickly. That is why tmobile bought voicestream. They are a good company and have allot of experience in buyouts!
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nextel18

Sep 17, 2007, 11:51 AM
I understand people can say they will they will, but the fact is, suncom has failed for a long time who knows if it will get better. They bought Voicestream because they saw a future in them and they were reaped with benefits. How much growth has T-mobile USA has since its inception and DT infusion. It is amazing. They do not need a company like Suncom messing that up.
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Starr06

Sep 17, 2007, 8:22 PM
Suncom will not mess anything up with T-Mobile.
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nextel18

Sep 18, 2007, 8:49 AM
Why do you say that? They have been doing a pretty good job on their own. A company like DT and T-mobile shouldn’t acquire Suncom, which is a horrible company.
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muchdrama

Sep 19, 2007, 12:49 AM
nextel18 said:
Why do you say that? They have been doing a pretty good job on their own. A company like DT and T-mobile shouldn’t acquire Suncom, which is a horrible company.


Right. Because they only have 1 million subscribers.

Brilliant argument.
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LicorShot

Sep 25, 2007, 9:54 PM
the fact of this matter is
Suncom was already going to be bought out by Tmobile as of 2005 when it was first introduced in june of that year
only reason it didn't happen is cause there was a clause in the contract that a timeline of 2 years had to be fulfilled before that merger could happen
so that AT&T Wireless could Merge with Cingular Wireless comfortably .

this is gonna be a great thing for T mobile and the customers of NC and SC because alot of the people in this region came from areas where tmobile had great service

i expect to see alot of people switch just cause they miss tmobile as a company and be loyal to them as they expand and build
plus it will kill the GSM monopoly that at&t(cingular) has created in the last 3yea...
(continues)
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nextel18

Sep 17, 2007, 8:48 AM
Cingular to invest $115M in N.C. network. "The company will add more than 230 cell sites"

About $500k per site including equipment to the sites.

Verizon and others also have expanded into NC. "since 2003, the company has spent $531 million in North Carolina to ensure network reliability and expanded coverage and capacity."
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wombough

Sep 17, 2007, 9:41 AM
true but Verizon sucks in eastern NC. Suncom has decent coverage in the two states. Both tmob and att use them to roam. They give unlimited voice for 60 a month and still can't get people to sign with them. That tell you anything?
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nextel18

Sep 17, 2007, 10:18 AM
Well I am just saying given that there already have been investments and I think T-mobile scored some spectrum in NC, all they need is infrastructure. They do not need anything else. If Verizon, who likes to spend heavily on anything they can get, isn’t successful than no one else would be either. Moreover, you can see Suncom’s failures too.

If they don’t think that it is acceptable to go there because of what you mentioned with the unlimited mins and price point, they shouldn’t even enter that market at all.
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wombough

Sep 17, 2007, 10:29 AM
its not that its they are a bad company. THey suck and no one likes them. Its not they don't have coverage or anythign like that its they are bad company and no one wants to deal with them. The area is fine. Lots of peole and all that
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nextel18

Sep 17, 2007, 10:34 AM
If they are losing money, and have a heft debt load why would anyone buy them especially a class organization like the T-mobile USA and DT family. The assets they have are great but not with the headache they might face. See that is the issue; if they are a bad company and no one wants to be with them, which means that many people won’t join them even if t-mobile takes over unless they get rid of everything. I remember a few times with Suncom that they actually lost subscribers. They only have 1 million customers out of the coverage pops they have. Not worth it. I would rather have seen t-mobile go after other companies or even do it themselves with roaming or other agreements.
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wombough

Sep 17, 2007, 11:29 AM
people know tmobile they will go with them. I know people that hated GTE but when verizon bought them they went with them. People hated primeco but when tmobile then voicestream bought them it was all forgotten. All they have to do is get rid of the name and after a few months people will forget all about suncom!
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nextel18

Sep 17, 2007, 11:32 AM
Not sure if that is the case but time will tell. Suncom has such a negative aspect to them that they would have to do more than changing the name.
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wombough

Sep 17, 2007, 11:39 AM
no because normal people don't understand all what we are talking about. All they know is I am with tmobile. Just because its was suncom they don't' understand that. Same thing when they bought prime co and powertell they both sucked big time. I had them both at one time. And in beaufort sc were powertel was it still lags big time as tmobile didn't fix it but people don't' remember that!
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nextel18

Sep 17, 2007, 11:50 AM
Of course they understand that. Brand image is very important to what customers think of before they buy that product or service. look at some companies who have bad images and how they are doing and the companies who have great images and doing well.
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lancekalzas

Sep 17, 2007, 12:56 PM
Just to clarify a little, T-Mobile didn't buy Primeco. Verizon did. I know this from two sources, one: I work for T-Mobile and I know the names of the companies T-Mobile did buy and two: My ex g/f used to work for Verizon but she started when the building she worked in was Primeco and she eventually became a supervisor for Verizon at the SC call center. T-Mobile did buy Powertel however.
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LicorShot

Sep 25, 2007, 10:00 PM
i so agree with this wombough

because even though cingular is now att with a name change
people swear since they hated att that the service got worse when in fact nothing but the name really changed
i have lost tons of customers because of that (i work for att which was cingular) and i have seen tons comeback because they hated cingular but loved att

Tmobile with survive only because the plans they have are great and customer service i hear is great and the aren't att or suncom

plus people love the sidekick for some reason and they have it and some other great phones

good luck tmobile....
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