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Deutsche Telekom May Sell T-Mobile USA to Sprint

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They simply don't get it

msteven3

Mar 8, 2011, 9:38 AM
Either the execs at T-Mobile or the execs at DT simply don't understand the real reason T-Mobile isn't growing. It isn't because of a lack of bandwidth; it's because they've essentially stopped expanding their coverage area. As it stands, T-Mobile covers urban areas and major highways, and that simply isn't going to cut it. Not only are they missing potential subs in smaller towns, but they're missing potential subs in the areas they do cover who might travel to these more rural areas and want to know they have coverage there.

I don't know if this is due to a misunderstanding of the difference between U.S. and European population patterns, but I suspect it does. And, IMHO, partnering with Sprint is about the worst thing they could do,...
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tacoma

Mar 8, 2011, 10:08 AM
msteven3 said:
Either the execs at T-Mobile or the execs at DT simply don't understand the real reason T-Mobile isn't growing. It isn't because of a lack of bandwidth; it's because they've essentially stopped expanding their coverage area. As it stands, T-Mobile covers urban areas and major highways, and that simply isn't going to cut it. Not only are they missing potential subs in smaller towns, but they're missing potential subs in the areas they do cover who might travel to these more rural areas and want to know they have coverage there.

I don't know if this is due to a misunderstanding of the difference between U.S. and European population patterns, but I suspect it does. And, IMHO, partnering with Sprint is a
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terryjohnson16

Mar 8, 2011, 10:36 AM
T-Mobile has plenty of spectrum to expand to rural areas, but they don't seem to want to do that.
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djdanska

Mar 8, 2011, 10:42 AM
They say they are doing just that. Last month they released a map showing their coverage expansion. They want to cover all the rural areas by 2013.
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terryjohnson16

Mar 8, 2011, 10:55 AM
It will take them time to accomplish that.
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Hitur Petar

Mar 8, 2011, 11:20 AM
I agree with most of the statements above. One big problem is the cost of building a lot of network to cover relatively few people. Another problem is that whichever carriers are already in any given area are really ingrained. My parents live in a small town and ATT is the only company that works there. Point being, only some of those people will want to switch, especially when they are getting free mobile to mobile to the virtually every one they know.
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that1guy

Mar 8, 2011, 11:54 AM
They could offer a plan like Sprint where calling any mobile phone is free. That could entice customers.

IF this merger goes through, I don't want to give up my Nexus One GSM phone for some android phone from Sprint.
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Phineas

Mar 8, 2011, 12:24 PM
Looks like Sprint might be gettig Nexus S, fyi.
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djdanska

Mar 8, 2011, 12:36 PM
To be honest, i don't find it incredibly hard. I've seen the map of estimated coverage. All they have to do is colocate on existing towers. (Make a deal with the companies that put up tower for us cellular, sprint, verizon, etc.)

Most people don't realize it but the mobile providers commonly don't own all their towers. A different company does it for them. Cheaper that way. They get a deal with the right companies, they can get t-mobile antennas put on existing verizon, sprint, or other local carriers towers.

It's not like t-mobile is planning on building out in places there is no cellular reception by any carrier.
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Azeron

Mar 8, 2011, 12:19 PM
Or thy could have bought Alltel when it was for cell and converted it to GSM. Verizon gets WAY too much credit for it's coverage. It was good before, buy getting Alltel which specialized in covering rural markets was a coup beyond belief. Sprint WHY did you let this happen?
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Phineas

Mar 8, 2011, 12:25 PM
The biggest mistake was taking Nextel over Alltel.
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Azeron

Mar 8, 2011, 12:30 PM
Exactly.
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Slammer

Mar 8, 2011, 4:58 PM
Nextel happened before Alltel. The Nextel merge fiasco set Sprint back tons of cash. Cash that would've been needed for the acquisition. There was in no way, Sprint could have out bid VZW. It would have been a futile attempt. Sprint and its investors knew this.

John B.
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Azeron

Mar 8, 2011, 6:28 PM
Scott Ford came to Sprint three times before the Nextel fiasco trying to get them to merge.
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CellStudent

Mar 8, 2011, 5:29 PM
Azeron said:
Sprint WHY did you let this happen?


Two years ago, Sprint didn't have the money to stop it from happening.
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Azeron

Mar 8, 2011, 6:42 PM
Alltel was there to be had before the Nextel merger. Scott Ford offered to merge twice and even offered to buy Sprint once. I know it sounds ridiculous, but despite what you may believe one thing Alltel knew how to do was turn a profit. When they finally sold out they fetched a high price. Ford just saw no future in a regional footprint.
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