Myth465 Posted March 21, 2011 Share Posted March 21, 2011 http://www.bloomberg.com/news/2011-03-20/at-t-agrees-to-buy-deutsche-telekom-s-t-mobile-usa-unit-for-39-billion.html Seems like a wooper of a deal. Thoughts. ---- The T-Mobile deal may give AT&T a way to boost earnings because of the money the companies would save by combining their operations. The companies’ estimate that they could have $40 billion in synergies is a realistic assessment, said Jonathan Chaplin, an analyst with Credit Suisse Group AG. “Phenomenal deal if it happens,” Chaplin wrote in a research note today. “Huge upside for AT&T; DT getting a great price; however, we believe regulatory risk is enormous.” In the last five years, the median deal price for a telecommunications company has been 4.5 times earnings before interest taxes depreciation and amortization, according to Bloomberg data. Deutsche Telekom said the purchase price is multiple of 7.1 times 2010 adjusted EBITDA. ---- Seems rich and the synergies seem high. I dont know how they get this through with the new market share numbers. Either way DT is getting a great deal, no one disputes that. Link to comment Share on other sites More sharing options...
given2invest Posted March 21, 2011 Share Posted March 21, 2011 will never be approved Link to comment Share on other sites More sharing options...
S2S Posted March 21, 2011 Share Posted March 21, 2011 will never be approved It might just get approved, albeit with a one-year (optimistic case) delay. When 2012 rolls around, VZ and T will be sitting comfortably on their LTE networks, S has Clearwire's Wimax in-fighting notwithstanding, while all T-Mobile USA has is HSPA+ (3.5G) and little 4G spectrum. It's either finding a partner (T brings more to the table than S can ever dream of) or bust for them. Link to comment Share on other sites More sharing options...
brker_guy Posted March 21, 2011 Share Posted March 21, 2011 It is a VERY SAD DAY for loyal customers of T-Mobile like myself, but a bonanza of a day for T-Rex: http://online.wsj.com/article/SB10001424052748704156304576003423395003238.html I am going from one of the better network providers to the WORST CARRIER on the planet... Link to comment Share on other sites More sharing options...
Guest Bronco Posted March 21, 2011 Share Posted March 21, 2011 How will the t-mobile network integrate with at&t's? Will my iPhone be able to actually make calls? Link to comment Share on other sites More sharing options...
S2S Posted March 21, 2011 Share Posted March 21, 2011 How will the t-mobile network integrate with at&t's? Will my iPhone be able to actually make calls? Each will gain access to partner's cell sites. Portability has never been an issue with voice calls. 3G data is a different story (for now), as the 2 carriers use different bands for data traffic (AT&T's 850mhz vs. T-mo's 1700mhz). In any case, it should a MUCH smoother process than Sprint's never ending integration of Nextel (CDMA and iDen are incompatible). Link to comment Share on other sites More sharing options...
Myth465 Posted March 21, 2011 Author Share Posted March 21, 2011 If I was buying today it would be DT. Sprint and Deutsche Telekom had been holding on and off discussions about a stock transaction that would give the Bonn- based company a major stake in the combined entity, the people said. AT&T, the second-biggest U.S. wireless provider, clinched the deal by paying about $25 billion in cash for T-Mobile USA and offering a $3 billion breakup fee, according to the people. The next step will be clearing regulatory hurdles. --- This CEO seems very sharp and gets a 10% stack should it all work out. I wonder if the fee includes regulatory hurdles. Link to comment Share on other sites More sharing options...
brker_guy Posted March 21, 2011 Share Posted March 21, 2011 This is a sad, sad day if you are a loyal T-Mobile customer like me. Those idiots at T-Rex are going to rape us blind once the merger is complete. Something to share with you about T-Mobile: http://www.download-telekom.de/dt/StaticPage/97/67/90/tmo-invday11.pdf_976790.pdf Page 51 highlight all of the plans of the 4 big carriers... Now, here is a PC World article on 4G tests of the 4 largest carriers: http://www.pcworld.com/article/221931/4g_wireless_speed_tests_which_is_really_the_fastest.html#tk.hp_fv The best thing T had going for it was the iPhone. Now, with the VZ iPhone coming out, that competitive advantage is pretty muted. The only way for these looters at T-Rex to get into the 4G game is to take out a competitor who already had 4G footprint. So, basically, all that hefty cash flow that they got from the iPhone users has bee washed down the toilets... Sad...Sad...Sad! I agreed with you, Myth. If I was a arbitrager today, DT would be a better bet to make. With a $3 billion breakup fee, T-Rex are going to send out the calvary to Washington DC to lobby for this deal to be completed... Link to comment Share on other sites More sharing options...
S2S Posted March 21, 2011 Share Posted March 21, 2011 ^ The PC World speed test comes short of proving your point - the numbers I'd look at are in the Laptop Modem Tests: Verizon's LTE (true 4G) is 2.5x faster on download and 5x faster on upload than T-Mobile's HSPA+ (a transition step between 3G and 4G). In 2 years AT&T will have a nationwide 4G network of their own. The smartphone test is all but useless, given Verizon didn't have a LTE phone until the Thunderbolt (which comes out this month?). That and the poor propagation characteristic of Sprint's WiMax network. Link to comment Share on other sites More sharing options...
Guest Bronco Posted March 21, 2011 Share Posted March 21, 2011 I'll go on record saying this deal WILL go through and the only issue will be the concessions that AT&T will need to make to appease Uncle Sam. Link to comment Share on other sites More sharing options...
brker_guy Posted March 21, 2011 Share Posted March 21, 2011 In 2 years AT&T will have a nationwide 4G network of their own. In 2 years? Good luck waiting for 2 years.... With AT&T that I know, reality is far more important than perception. Link to comment Share on other sites More sharing options...
given2invest Posted March 21, 2011 Share Posted March 21, 2011 I'll go on record saying this deal WILL go through and the only issue will be the concessions that AT&T will need to make to appease Uncle Sam. You're not being so bold. The way the stocks are trading, it's expected to go through. Sprint is down 15%, AMT, down 7.5%, etc. I will go on record saying it will not go through regardless of how much spectrum they divest. Link to comment Share on other sites More sharing options...
Myth465 Posted March 21, 2011 Author Share Posted March 21, 2011 I dont think it should go through. But who knows. It will kill competition inmo. Sprint should buy TMobile, and we should have the big 3 with a few regionals. Link to comment Share on other sites More sharing options...
Guest Bronco Posted March 21, 2011 Share Posted March 21, 2011 I don't care about being bold. I care about being right. Actually, I don't care at all. I have no position in any of these POS. But I am going on the record, just as I was with Japan. Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted March 21, 2011 Share Posted March 21, 2011 The GOUGING has already begun...................................... NEW YORK (AP) -- AT&T Inc. said Monday that if its deal to buy T-Mobile USA goes through, T-Mobile subscribers with "3G" phones will need to replace those to keep their wireless broadband service working. But there will be plenty of time to do that. http://finance.yahoo.com/news/ATampT-TMobile-3G-phones-will-apf-862423457.html?x=0&sec=topStories&pos=8&asset=&ccode= Link to comment Share on other sites More sharing options...
brker_guy Posted March 21, 2011 Share Posted March 21, 2011 Carl, what did Roosevelt use to say again, "Talk softly, but carry a big stick", was it? Look at what our favorite Senator from W. Va has come out and said: AT&T says, though, that wireless prices have fallen over the last decade, even after the government approved mergers including AT&T with Cingular and Sprint with Nextel. Sen. Jay Rockefeller, D-W.Va., urges the Justice Department and Federal Communications Commission to "leave no stone unturned in determining what the impact of this is on the American people." http://www.usatoday.com/tech/news/2011-03-20-att-deal_N.htm Sure, Mr. Rockafella! Sure! We are going to GET GOUGED BIG TIME!!! Link to comment Share on other sites More sharing options...
Guest ValueCarl Posted March 21, 2011 Share Posted March 21, 2011 There he goes tawking about "The American People" like he gives a rat's ass, eh Brker_guy? You don't need an ARMY of REGULATORS and LEGISLATORS to figure this one out; we already did! Of course, Jay ROCK has long ago shown his loyalties to VZ, so, your comment about an inevitable merger there seems very plausible today. Consumers will lose, and innovation will be LESSENED. I gave an earlier example when TREX was feeling the long distance pressure prior to SBC coming to their rescue. Until this day, SBC hasn't RELEASED the "CALL VANTAGE" product in conjunction with "NAKED DSL." I do stand corrected slightly though, as of just recently! T REX in the last mile is now offering a $15.00 per month 12 month commitment for high speed broadband, stand alone, in order to BREAK the BUNDLE in the JUNGLE of the cable monsters!!!!!! Bring it on, MOFO! ;D And, let he who is the greatest to keep INNOVATING, win! ;D Link to comment Share on other sites More sharing options...
brker_guy Posted March 21, 2011 Share Posted March 21, 2011 S2S, I forgot to mention earlier today of your comments about T-Rex' integration of their LTE with T-Mobile's. I think T-Rex is on 700MHz band for their LTE. Note slide 21: http://www.att.com/Common/about_us/pdf/INV_PRES_3-21-11_FINAL.pdf Folks, this is all about SPECTRUM or lack of it. LTE is making the first move because they know they will need LTE spectrum to get all of those hungry BW users out there which they are about to gouged. Don't let those greedy AT&T guys fool you. AT&T says T-Mobile’s AWS frequencies would help it deploy LTE to 95 percent of the American population. LTE saves carriers money because more users can share one tower. The pitch is faster speed. The catch is higher prices. http://www.eetimes.com/electronics-news/4213758/LTE--The-road-ahead Link to comment Share on other sites More sharing options...
given2invest Posted March 21, 2011 Share Posted March 21, 2011 I think it's funny my targeted ad in this thread is for Sprint, probably due to me researching them a bit today. :) Link to comment Share on other sites More sharing options...
S2S Posted March 21, 2011 Share Posted March 21, 2011 S2S, I forgot to mention earlier today of your comments about T-Rex' integration of their LTE with T-Mobile's. I think T-Rex is on 700MHz band for their LTE. Note slide 21: http://www.att.com/Common/about_us/pdf/INV_PRES_3-21-11_FINAL.pdf Folks, this is all about SPECTRUM or lack of it. LTE is making the first move because they know they will need LTE spectrum to get all of those hungry BW users out there which they are about to gouged. Don't let those greedy AT&T guys fool you. AT&T says T-Mobile’s AWS frequencies would help it deploy LTE to 95 percent of the American population. LTE saves carriers money because more users can share one tower. The pitch is faster speed. The catch is higher prices. http://www.eetimes.com/electronics-news/4213758/LTE--The-road-ahead brker_guy, it's the other way around (see page 21 of the presentation): AT&T owns the 700mhz band which is penciled for its coming LTE rollout What T-Mobile has are the 1700mhz AWS airwaves, currently utilized for its HSDPA 3G services AT&T plan is to move T-Mo users to its 850/1900 band and thus free up the 1700 AWS band for additional LTE coverage All told, the 700mhz band AT&T owns is both more plentiful AND of higher-quality (lower frequency => better propagation) than T-Mobile's already occupied 1700mhz From AT&T perspective, the move is more about resolving their current network issues and eliminating a competitor while at it. It is T-Mobile who needs a partner to make up for their lack of 4G spectrum Link to comment Share on other sites More sharing options...
brker_guy Posted March 21, 2011 Share Posted March 21, 2011 S2S, I was commenting on your post earlier which you said this: Each will gain access to partner's cell sites. Portability has never been an issue with voice calls. 3G data is a different story (for now), as the 2 carriers use different bands for data traffic (AT&T's 850mhz vs. T-mo's 1700mhz). I know about AT&T owning the 700MHz band... So, your comments about "AT&T plan is to move T-Mo users to its 850/1900 band and thus free up the 1700 AWS band for additional LTE coverage" are not entirely correct. But, it's neither here nor there. Either way, consumers are going to get gouged by these crooks at AT&T. http://www.engadget.com/2011/03/21/confirmed-atandt-wants-to-use-t-mobiles-aws-spectrum-for-lte-bui/# "From AT&T perspective, the move is more about resolving their current network issues and eliminating a competitor while at it. It is T-Mobile who needs a partner to make up for their lack of 4G spectrum" LOL! This comment here makes it sounds like you are an AT&T loyal customer...Let me see. Was it you that said, "In 2 years AT&T will have a nationwide 4G network of their own." when T-Mobile is already launching its migration toward 4G with HSPA+? Tell me again, whose network is more advanced than whose again? LOL!!!! Link to comment Share on other sites More sharing options...
S2S Posted March 21, 2011 Share Posted March 21, 2011 Hold the personal attacks. I'm in fact a happy Sprint customer. HSPA+ is only "4G" if you believe the sales pitch (for now, anyway) straight from T-Mobile and AT&T. What everyone wants is a LTE network, which only Verizon has partially built out. I believe even Sprint will soon abandon the less efficient WiMax alternative and migrate to LTE at some point. It is relatively inexpensive to upgrade traditional 3G network to HSPA+ standards, which is exactly what AT&T is doing. Hence their joining the chorus claiming HSPA+ as "4G". It's smart move for the present, not so much a few years down the road. Link to comment Share on other sites More sharing options...
brker_guy Posted March 21, 2011 Share Posted March 21, 2011 Hold the personal attacks. S2S, I was only quoting the two facts that you posted up here. No personal attacks on my part here. That's why I quoted you to get your exact words straight about your comments on AT&T's 850Mhz and the 2 yrs rollout of T's 4G service. HSPA+ is only "4G" if you believe the sales pitch (for now, anyway) straight from T-Mobile and AT&T. The last thing as a wireless industry insider like me would do is buy into the hypes of T, VZ, T-Mobile or SprintPCS. I sweated away too many tears and many sleepless hours at these carriers' BSS to optimize their networks for multimedia services to care what they are pumping... What everyone wants is a LTE network It's comments like this one that I can't help but to quote you on it because I just want to get the facts straight on your assumption. So, here are something for you to consider since you brought up this "LTE must have network" up: http://www.wimax.com/lte/why-the-wimax-vs-lte-battle-isnt-a-battle http://www.telecoms.com/11695/wimax-vs-lte-vs-hspa-who-cares-who-wins/ So, for the sake of our long-term prospects, let’s stop this nonsense about how one technology trounces another. Important people, the end users, simply do not care. WiMAX, LTE and HSPA+ will all be widely deployed. As an industry, our energy needs to be focused on delivering services and applications that exceed the customer expectations. We all need to take this advice for Robert Cringely who used to write a very good column on PBS called "The Pulpit" and a famous show called "Triumph of the Nerds" on PBS, "It's not the best technology that wins; it's the best exploiter of technology that wins". Link to comment Share on other sites More sharing options...
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