Seeking Alpha

France's Iliad reportedly bids for T-Mobile; Sprint dives (updated)

  • The WSJ reports French carrier Iliad has made an offer to buy T-Mobile USA (TMUS +4.1%).
  • Would-be T-Mobile acquirer Sprint (S -5.5%) has dived on the report, and T-Mobile has spiked higher.
  • Update: Iliad has confirmed its offer.
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Comments (2)
  • putzandcallz
    , contributor
    Comments (104) | Send Message
     
    Game on! waiting S ! $7.00 what's up with that?
    31 Jul 2014, 01:15 PM Reply Like
  • aryanmehr
    , contributor
    Comments (146) | Send Message
     
    Sprint will do fine with their current plans to overhaul their entire network. Considering they are doing a 'rip and replace' throughout their infrastructure, losing 254,000 subscribers is nothing considering their circumstances. Let's not forget closing down Nextel has been costly, however over the long run they are no doubt on the right glide path. I wonder what will happen to John Legere, if Sprint decides to shun TMUS? Legere has done well to challenge Sprint while it was wounded, however he has no idea what he has done. He has woken a sleeping giant under the helm of Masayoshi Son. Once Sprint consummates it network build out the competition will get much fiercer and I suspect Legere will get his rear slammed. He better pray that this merger is approved very soon or else his spectrum constraints will begin to manifest themselves.

     

    Sprint beat Earnings Estimates by two cents with $23 million, which is the first time they have reached positive earnings in 7 years. If you peruse their recent earnings report, you will notice that they now have 254 million 4G LTE POPs and 27 markets with Spark. A third party Root Metric report recently manifested Sprint's networks have drastically improved download speeds in the latter three months, coming in second only to Verizon. As their network is being ripped and replaced with the latest technology their metrics will no doubt be affected however as Sprint's Towers get closer to completion we should begin to see positive churn and if management is correct they expect this to happen in the next five months.

     

    Sprint's 8T8R/MIMO field testing appears to be complete and its deployment has begun to accelerate. The company expects to have 100 million POPs of 2.5GHz switched on by the end of this year. Its repurposing of its 800Mhz spectrum acquired from truncating Nextel is close to being fully deployed.

     

    Truncating Nextel has begun to manifest substantial savings. Q2 14 earnings were 30% higher than Q2 13. In the last seven years Sprint has reduce customer care costs for Post Paid and Pre Paid customers by 63% and 88% respectively. Voluntary churn continues to decline as they complete upgrading their towers.
    31 Jul 2014, 10:01 PM Reply Like
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