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fareastwarriors

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We don't have a Sprint thread?

 

The company is play again. Dish is topping Softbank's offer.

 

 

Sprint investors would get $7 a share, including $4.76 in cash, and a stake representing about 32 percent of the combined company, Englewood, Colorado-based Dish said today.

 

 

 

Dish argues that the deal represents a 13% premium to Softbank's complicated proposal to buy 70% of Sprint for $20.1 billion.

 

 

http://www.bloomberg.com/news/2013-04-15/dish-offers-25-5-billion-for-sprint-to-challenge-softbank-bid.html

 

 

http://online.wsj.com/article/SB10001424127887324030704578424200831745578.html?mod=WSJ_hps_LEFTTopStories

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I could have sworn there was a thread but couldn't find one either lol.

So Sprint has had quite a run from their lowly 2's.  For those that have it, is it time to exit out?  Hold out til a merger closes?  Wait for a better offer? Become dish shareholders?

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There is another thread on CLWR that S is being referred to often as destroyers of technological innovations... 

 

Being a shareholder of both S and CLWR, I suggest you check out that thread to see.  Before you decide to do anything, I hope you studied up on DISH's offer and focus on slides: 4, 5, 12, 13 and 36...

 

http://completedishsolution.com/assets/uploads/2013/04/Project-Wavelength-Investor-Presentation.pdf

 

It's getting better and better everyday with DISH's bid. This offer is a win-win for the S and CLWR shareholders in one swoop... 

 

http://ca.finance.yahoo.com/news/softbank-could-gain-3-5-billion-walking-away-035729781--sector.html

 

It's time Son-san to step up his game!  As I said on the CLWR thread, VZ is now interested in CLWR's spectrum... 

 

 

 

 

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Let that bidding war begins, Sprint and Softbank!

 

http://www.telecomramblings.com/2013/05/sprint-bows-to-pressure-boosts-clearwire-bid/

 

And it gets better.  DISH made a move to buy bankrupt Lightsquared spectrum today for $2BIL

 

http://www.bizjournals.com/denver/news/2013/05/20/report-dish-bids-2b-for-lightsquared.html

 

A Dish move putting a $2 billion pricetag on LightSquared’s troubled frequencies could convince Clearwire shareholders that its less-constrained spectrum is worth more than what’s been offered and clinch a rejection of Sprint’s bid.
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Forcing Ergen to pay up for T-Mo would be a bit of payback for Ergen forcing Sprint to pay up in the S/CLWR transaction.

 

What makes this even more interesting is that Sprint and Dish just announced that they are trialing a jointly developed fixed wireless broadband service in Texas:

 

http://newsroom.sprint.com/news-releases/sprint-and-dish-to-trial-fixed-wireless-broadband-service.htm

 

So they are acting sort of like frienemies at this point.

 

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TxLaw,

 

Yeah, I saw the same thing the other day.  I thought about posting it here, but I didn't know that this DISH/TMUS merger might be taking place.

 

Happy Holidays to you!  See you in Feb, I hope, at DJCO

 

Same to you.  I do think I'll try to make it out to the DJCO meeting, but I'm on the fence at the moment.

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Guest wellmont

I don't see any way S and TMUS can merge. Ergen is in the cat bird seat. whoever he aligns with becomes the solid #3 US carrier. The one that's left out has no clear way of getting bigger and stronger.

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I don't see any way S and TMUS can merge. Ergen is in the cat bird seat. whoever he aligns with becomes the solid #3 US carrier. The one that's left out has no clear way of getting bigger and stronger.

 

Interesting.  I view Son as being in the catbird seat.

 

I think Sprint will become the solid #3 carrier regardless of whether or not they buy T-Mo.  Ergen is desperate to do something with the spectrum that he has collected, and to prepare for a world where these media bundles he's selling become much less valuable.  If he does get a hold of T-Mo, they can be a solid 4th place, but it won't be easy. 

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Guest wellmont

I think S is in good position. I think tmus is in good position. if dish got hold of tmus they would take lots of share from the big two. I would rather own tmus and s than vz and t. I think DT wants out of it's tmus investment. unfortunately I don't see DOJ approving a s tmus merger.

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Guest wellmont

Mainstream media starting to talk about possible substitutes for wireless carriers' products:

http://www.businessweek.com/articles/2014-01-02/what-wi-fis-popularity-means-for-cell-phone-carriers

 

Has anyone else been taking advantage of the market pricing in S to offload their position?

 

i still think it's ok here. People got way too jacked up about the possible tmus deal, which can only get approved with significant concessions. i own about 20% less than I did. the problem with wifi is it's not ubiquitous. it doesn't have blanket coverage. even if it covers 80%, and it is far from that, people will buy data from carrier for the other 20%, and pay for 100%. people pay for convienence and productivity, especially at the monthly cost of one dinner for two.

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Mainstream media starting to talk about possible substitutes for wireless carriers' products:

http://www.businessweek.com/articles/2014-01-02/what-wi-fis-popularity-means-for-cell-phone-carriers

 

Has anyone else been taking advantage of the market pricing in S to offload their position?

 

i still think it's ok here. People got way too jacked up about the possible tmus deal, which can only get approved with significant concessions. i own about 20% less than I did. the problem with wifi is it's not ubiquitous. it doesn't have blanket coverage. even if it covers 80%, and it is far from that, people will buy data from carrier for the other 20%, and pay for 100%. people pay for convienence and productivity, especially at the monthly cost of one dinner for two.

 

You're right about the wifi ubiquity problem, but I'm not so sure people will be forced to pay 100% of current post-paid ARPU for that 20% coverage they need.  In fact, that's what I'm worried/hopeful about.   

 

We could start to see more hybrid solutions.  Republic Wireless, which is mentioned in that BWeek story, puts traffic onto the S network for wholesale rates when there is no wi-fi coverage.  See https://republicwireless.com/faqs .  If that type of hybrid solution becomes more popular, the big carriers may only receive revenue related to part of the data related to "mobile" traffic.

 

I think it would be wise to factor that in when valuing S because I doubt they will ever get to EBITDA margins of the type that T and VZ are enjoying at this time, even if they become as efficient and gain market share, simply because I think the revenue per consumer user could go down over time for the wireless carriers.  Just a risk to think about.

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Guest longinvestor

Masayoshi Son on Charlie Rose:

 

http://www.bloomberg.com/video/softbank-ceo-masayoshi-son-charlie-rose-03-11-42hVejRiTYagXWH~9MohJQ.html

 

He's been very active lately, making the push for a S/TMUS merger to the public.  I'm still hopeful that we are going to see a top in wireless post-paid ARPU in the next few years.

Thanks for posting. This guy is seriously visionary. I have to research his statement about the Wireless Broadband in Japan, have a vested interest!

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Guest longinvestor

Masayoshi Son on Charlie Rose:

 

http://www.bloomberg.com/video/softbank-ceo-masayoshi-son-charlie-rose-03-11-42hVejRiTYagXWH~9MohJQ.html

 

He's been very active lately, making the push for a S/TMUS merger to the public.  I'm still hopeful that we are going to see a top in wireless post-paid ARPU in the next few years.

Thanks for posting. This guy is seriously visionary. I have to research his statement about the Wireless Broadband in Japan, have a vested interest!

 

From their most recent quarterly filing, Wireline Broadband Pricing comparison: $0.53/Mbps in the US versus $0.04/Mbps in Japan. Along with aggressive wireless pricing plans that Softbank has launched in Japan we could well see huge disruptions in the US wireless industry.

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