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Time for Verizon to buy Sprint?

andy2373

Aug 26, 2011, 5:59 AM
http://money.cnn.com/2011/03/23/technology/sprint_ve ... »

NEW YORK (CNNMoney) -- With AT&T dealing for prized asset T-Mobile, Sprint's options may be down to two: buy everything smaller than it or get bought by Verizon.

Sprint (S, Fortune 500) will be a distant third in the U.S. wireless industry if the AT&T/T-Mobile merger goes through. The carrier would control just 16% of the market, while AT&T (T, Fortune 500) and Verizon (VZ, Fortune 500) would own more than 70% of it.

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"I do have concerns that it would stifle innovation and that too much power would be in the hands of two [companies]," Sprint CEO Dan Hesse said Tuesday at a panel discussion at the CTIA Wireless Conference in O
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gloopey1

Sep 15, 2011, 9:46 AM
If the at&t & T-mobile deal goes through, Sprint actually could come out on top for several reasons:

1. Sprint has rapidly gained top honors in the area of network and customer service. Since Sprint is still cheaper than either at&t or Verizon, this makes their service increasingly more attractive to a buying public who is searching for quality at a lower price.
2. Although Sprint is now behind the 8 ball in terms of 4G, the other two guys data caps make what they offer all but useless to the average family. Most families in America operate on very tight budgets and cannot afford the ridiculous cost associate with 4G data plans from the other guys (in a world where TMO no longer exists).
3. With 70% of all wireless phone users utilizing...
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gloopey1

Sep 15, 2011, 9:55 AM
...the defection of TMO customers from at&t should this merger go through. Remember, at&t is dead last in call quality, customer service and other key deliverables compared to its three rivals. While at&t has promised to retain TMO's plans should they obtain approval, the total experience the TMO customer now has will rapidly be swallowed up into at&t's vast mega-culture.

I really am no longer concerned about the future of Sprint. I feel that they are on the right track now and still have many possible merger options besides Verizon on the table (US Cellular, Metro PCS, Cricket, etc.). If Sprint and US Cellular merged in the near future, this would vastly increase Sprint's native rural footprint without the need to hook up with Verizon. I...
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cellphonesaretools

Sep 15, 2011, 10:58 PM
RE: "I really am no longer concerned about the future of Sprint."

Dan Hesse sure seems concerned. Concerned enough to spend a whopping amount of precious cashflow on (a) lobbying multiple federal agencies, and (b) bringing their own lawsuit against the ATT+T-Mo merger. Hesse also risked what could have been a major PR backfire if Sprint had been perceived as the industry crybaby. You might not be concerned, but Hesse & his board certainly are.

The sheer economics of the Big Two (ATT & VZ) alone could keep Sprint in such a profit & cashflow bind that Sprint will never achieve critical mass. Simply introducing the iPhone to Sprint's CDMA network will begin burning the candle at both ends and in the middle: (1) Sprint will have to heavily...
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gloopey1

Sep 16, 2011, 10:22 AM
Dan Hesse has to be concerned about Sprint, he is the CEO after all.

You guys have been pronouncing Sprint dead for the last few years, yet they seem to chug right along. I will echo what another poster said that he/she predicted Sprint will be here this time next year. I'll go a little farther and say the year after as well.
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cellphonesaretools

Sep 16, 2011, 11:28 PM
You must be confusing me with someone else - I've never said Sprint would be dead in any given time.

What I have said is that Sprint is so good at shooting itself in the foot and failing miserably at executing its "initiatives", that it will always be an also-ran, and possibly eventually absorbed by Verizon.

Personally, I would hate to lose Sprint, but that's not because I like Sprint. I actually dislike Sprint, because it is a company of bumbling idiots, continuously performing poorly and blowing every positive potential that comes their way. The only reason I would hate to lose Sprint is that I dislike ATT & VZ even more than I dislike Sprint ;-)

The one and only thing Sprint has going for it any more is their plan pricing, which ...
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DiamondPro

Sep 21, 2011, 6:47 PM
Couldnt be worse then the bumbling idiots over at verizon ripping people off.

Sprint also has there decent coverage and best in class Smarphone line up which is more then enough for them to compete against att or verizon. Cool
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cellphonesaretools

Sep 22, 2011, 12:14 AM
DiamondPro said:
Couldnt be worse then the bumbling idiots over at verizon ripping people off.

Sprint also has there decent coverage and best in class Smarphone line up which is more then enough for them to compete against att or verizon. Cool


Hmmmmm...then how do you explain the fact that Verizon and ATT in Q2 of this year added new customers at a rate 10X Sprint's net adds to CDMA (that's pure Sprint CDMA post-paid subscribers, and ignoring everything related to Nextel). In Q2 Sprint CDMA postpaid added 226,000 net subscribers, while in the same period Verizon added 2,200,000 new post-paid subscribers.

If Sprint's handset lineup and CDMA network coverage are equal to or better than Verizon's, what is...
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Sway Dc5

Sep 22, 2011, 10:05 AM
I like turtles...
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vercetti

Sep 22, 2011, 11:59 AM
most of it is because the numbers included churn for Nextel in the numbers
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cellphonesaretools

Sep 24, 2011, 12:06 AM
vercetti said:
most of it is because the numbers included churn for Nextel in the numbers



Wrong. The 226,000 net CDMA adds for Sprint are completely independent of the losses on the iDEN side. I specifically ignored the Nextel & Boost iDEN losses, and stated only the NET ADDS to Sprint CDMA.
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vercetti

Sep 24, 2011, 5:42 PM
Your numbers are misleading, here is a Quoate from Hesse on a slide show he did posted on many financial sites:

"Please turn to Slide 6, if you will. Perhaps, the best indicator of brand strength is subscriber performance. Driven by improvements in churn, we achieved $1.1 million net adds in the second quarter, an improvement of 1 million from last year's second quarter, and this was our third consecutive quarter with over $1 million total net new subscribers. The Sprint brand was net add positive for the seventh consecutive quarter, and net port positive for the fifth straight quarter."
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Sisyphus

Sep 24, 2011, 6:50 PM
cellphonesaretools is talking about net adds. Looks like you're talking about net profit from those adds.



Unless you and Hesse just really like the $ symbol.
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cellphonesaretools

Sep 25, 2011, 12:26 AM
Sorry, vercetti, it is YOUR number that is misleading. As Sisyphus already pointed out to you, that 1.1 million adds is TOTAL adds, not NET adds, and it includes ALL adds, of ALL of Sprint's networks, both prepaid & postpaid, and ALL of the MVNO's (in case you are not aware, the MVNO's are NOT the Sprint brand, they are separate, smaller companies leasing network bandwidth from Sprint and reselling it under their own brands).

It can't be stated any more clearly than this, as quoted directly from Sprint's own press release: "The CDMA network added approximately 226,000 net postpaid customers during the quarter"

Again, in the same period, Verizon added a NET 2,200,000 postpaid customers, a ratio of 10:1.

The numbers speak for themselv...
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DiamondPro

Sep 26, 2011, 6:35 PM
Because verizons marketing maybe 10x better because their network and phones sure are not. Sprint has the best smartphones available period. There is also no way verizon has 10x times more coverage then Sprint so not sure why big red is pulling more subs. I could careless who has more subs because Sprint is perfect for me and they do way more for way less. Cool
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cellphonesaretools

Sep 26, 2011, 9:57 PM
RE: "I could careless who has more subs because Sprint is perfect for me and they do way more for way less."

I'll agree to that statement, no argument there. In fact, one of the things I'm enjoying about Nextel (before they shut it down) is that there are so few subs on iDEN now, everything is working great for me. I'd RATHER be on a less-popular network, even though coverage is not as good.
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Jayshmay

Sep 25, 2011, 3:26 AM
Notice how he never responded? Probably one of those people who can't handle the truth.
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Sisyphus

Sep 21, 2011, 9:40 AM
Bullish.

Apple, Google, Disney, Walmart, McDonalds, Coke, GE, etc. are all companies that directly disagree with that statement.
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Vosim

Sep 21, 2011, 6:02 PM
A better way to put it is "the American public likes to disdain the corporations because it helps their self-image, but they go right on consuming the corporate products because they're lazy."
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DiamondPro

Sep 21, 2011, 6:43 PM
Verizon is not going to buy Sprint anytime soon. Just because tmobile is being bought out doesn't mean Sprint will. Fail post to say the least. Verizon has already clearly stated they have no interest in buying Sprint. Cool
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cellphonesaretools

Sep 22, 2011, 12:36 AM
DiamondPro said:
Verizon is not going to buy Sprint anytime soon. Just because tmobile is being bought out doesn't mean Sprint will. Fail post to say the least. Verizon has already clearly stated they have no interest in buying Sprint. Cool


Of course Verizon says they have no interest in Sprint. It is in Verizon's best interest to state publicly that they have no interest in Sprint, because that would just boost Sprint's stock price, which would make Sprint more expensive for them to eventually buy.

Verizon has time on its side. If the ATT/T-Mo deal falls flat, then Verizon doesn't have to do anything, just stay the course as they are doing now. ATT spends a ton of money and corporate energy pursuing T-Mo...
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CellStudent

Oct 4, 2011, 12:28 AM
...when you can get the milk for free?
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DiamondPro

Oct 5, 2011, 9:43 PM
Which is exactly what Sprint has been doing on verizon/alltels network for years. Cool
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