Home  ›  News  ›

AT&T To Acquire T-Mobile USA

Article Comments  

all discussions

show all 24 replies

Well--

muchdrama

Mar 20, 2011, 3:48 PM
--now we know the Sprint rumor was designed to drive up share prices. Or a bargaining tool.
...
T Bone

Mar 20, 2011, 3:52 PM
I don't think it was a ploy, I think they really were planning a merger with Sprint, but it just fell apart and they went to AT&T as a second option.
...
Versed

Mar 20, 2011, 3:54 PM
I also think both DT and AT&T want global partners. Something Sprint can't do.
...
T Bone

Mar 20, 2011, 4:00 PM
That and the fact that no major changes will need to be made to the networks since they are already compatible....
...
that1guy

Mar 20, 2011, 4:03 PM
T Bone said:
That and the fact that no major changes will need to be made to the networks since they are already compatible....


Except prices.
...
T Bone

Mar 20, 2011, 4:08 PM
Yeah, the prices aren't the same...but what this shows is that gutting your profit margins by slashing prices to the bone is not actually a winning business strategy over the long term.

The real problem is that it is, and pretty much always has been, very difficult to make a profit from selling phone service. That's the reason why the original 'Ma Bell' monopoly developed in the first place, and that is the reason why the old 'Ma Bell' monopoly seems to be rebuilding itself.

It's like in Terminator 2 when the T-1000 got hit with the liquid nitrogen and it shattered.....and then slowly all the pieces started re-assembling itself...

Making a profit from phone service is difficult, that it why it tends towards monopoly.
...
Great Gadsden

Mar 20, 2011, 4:17 PM
T Bone said:
Making a profit from phone service is difficult, that it why it tends towards monopoly.


Luckily for us consumers, the Anti-Trust laws are regularly enforced.
...
T Bone

Mar 20, 2011, 6:21 PM
Well technically it is not illegal to be a monopoly, what is illegal is leverging a monopoly to prevent competition.
...
lollipop

Mar 20, 2011, 5:36 PM
It is not hard making a Profit off of phone service. Verizon and Att are profitable because their service.

Carriers make no money selling PHONES. This is why the carriers force contracts the way they do. With every customer whom gets a device at contract price the carrier will got in debt for 3 to 6 months depending on device. After the device is paid off the profit from the service plan is enormus. A 900 minute unlimited data and texting plan only costs a carrier 15 bucks to provide you and will generally charge you near 110 dollars.

The people they make money off of is the Smartphone users. Its the Feature phone users they make the least profit off of.
...
Azeron

Mar 20, 2011, 9:03 PM
"The real problem is that it is, and pretty much always has been, very difficult to make a profit from selling phone service."

The REAL problem is that YOU are delusional. Let's see...SMS cost the carrier next to nothing and MMS nothing at all and customer's either get billed $.15 and $.25 per message respectively or pay for a messaging bundle which is pure profit. Providing buckets of minutes for less than pennies and charging for them and never mind overage fees. Again...profit. Data caps and overages fees there which are not justifiable and make them a heap. Damn! We're selling air, Bubba and these fools are paying for it!
...
JeffroPuff

Mar 20, 2011, 8:34 PM
yes, no major changes will need to be made to the networks except prices. That doesn't even make sense. I see where you were going with it, buuuuut...
...
Azeron

Mar 20, 2011, 8:58 PM
T-Mobile's prices will go away now.
...
Versed

Mar 20, 2011, 4:03 PM
RIM and Nokia already make Pentaband phones, I'm sure more will be coming if this merger goes through.
...
Great Gadsden

Mar 20, 2011, 4:06 PM
Wow...really? Five radios? That's nuts. 🤣
...
Azeron

Mar 20, 2011, 9:10 PM
Why? T-Mobile had no choice but to use AWS as there was no 1900 MHz spectrum available. Maybe AT&T will use that AWS spectrum for something different...
...
ELawson87

Mar 20, 2011, 4:11 PM
AT&T's 3G and T-Mobile's 3G aren't compatible. It's why if you unlock an iPhone and take it to T-Mobile, you're stuck with EDGE.
...
T Bone

Mar 20, 2011, 4:15 PM
That's true but that can be resolved simply by adding an additional frequency to the handsets....you don't have to make changes to the network itself to fix that problem.
...
Azeron

Mar 20, 2011, 9:14 PM
Or stop using AWS for future handsets.
...
Azeron

Mar 20, 2011, 8:56 PM
I wonder what they plan to do with AWS going forward?
...
CamelTowing

Mar 20, 2011, 4:20 PM
It wasn't a rumor. ATT had bigger pockets. I think the ATT offer was just better for DT. And the fact that Dan Hesse probably laughed in their face when DT wanted 50% control of the new company. I'm also pretty sure that $39 billion gives ATT international roaming rights for it's customers. I'm pretty shocked myself. But I think it's HILARIOUS to think of the bulging veins on some of the heads of the forum users here. If they hated the idea of selling to Sprint, they are going to have an aneurysm on the spot with AT&T.
...
Versed

Mar 20, 2011, 4:56 PM
CamelTowing said:
It wasn't a rumor. ATT had bigger pockets. I think the ATT offer was just better for DT. And the fact that Dan Hesse probably laughed in their face when DT wanted 50% control of the new company. I'm also pretty sure that $39 billion gives ATT international roaming rights for it's customers. I'm pretty shocked myself. But I think it's HILARIOUS to think of the bulging veins on some of the heads of the forum users here. If they hated the idea of selling to Sprint, they are going to have an aneurysm on the spot with AT&T.

🤣

Or the posters (OK, I won't use the R word) who feel its some moral right for Sprint to have this merger. You see them or on other websites feeling if one carrier...
(continues)
...
CamelTowing

Mar 20, 2011, 5:18 PM
Agreed. I think it's actually better for Sprint to not merge with Tmob even though I really thought it was going to happen. I think ATT just didn't want the possibility of becoming number 3 looming on the horizon. So they jumped in and bought them for more than Sprint would or could offer. I can already see many benefits of being in Sprint's position right now.
...
Great Gadsden

Mar 20, 2011, 5:29 PM
CamelTowing said:
So they jumped in and bought them for more than Sprint would or could offer.


I don't think Sprint can offer enough. AT&T, assuming the FCC and Justice Dept allows the merger, will pay $25B cash and pay the rest with stock dividends. I think Sprint simply cannot gain the capital necessary to purchase T-Mobile. Their credit rating isn't strong enough for that.
...
CamelTowing

Mar 20, 2011, 7:38 PM
They are in the middle of selling assets to cover the costs of something... and it's nothing small.

I think DT offered Sprint a merger with 50% control of the new company. It publicly stated that this was what it wanted. Sprint was no comment. Next thing ya know... ATT bought Tmob.
I think it's pretty clear that Sprint declined the 50% ownership offer. I'm not sure that's the only reason it declined. Dan has a pretty clear future lined out in his head for Sprint. I don't think a merger with Tmob was part of the picture.
...
JeffroPuff

Mar 20, 2011, 8:54 PM
Yes, Camel. No doubt a company coughed up THIRTY-NINE BILLION DOLLARS just to make sure there weren't two companies bigger than them.......even hough Sprint + T-Mobile's customer bases combined still puts the combined company in 3rd...
...

This forum is closed.

Please log in to report a message to the moderator.

This forum is closed.


all discussions

Subscribe to Phone Scoop News with RSS Follow @phonescoop on Threads Follow @phonescoop on Mastodon Phone Scoop on Facebook Follow on Instagram

 

Playwire

All content Copyright 2001-2024 Phone Factor, LLC. All Rights Reserved.
Content on this site may not be copied or republished without formal permission.