Seeking Alpha

Deutsche Telekom (DTEGY.PK) confirms it's in talks with MetroPCS (PCS +18.1%) about a merger...

Deutsche Telekom (DTEGY.PK) confirms it's in talks with MetroPCS (PCS +18.1%) about a merger with its T-Mobile USA unit, but adds major issues haven't been finalized. DT's board is expected to vote on the deal tomorrow. Some of the fallout: 1) Sprint (S -4.5%) is now widely expected to go after Leap Wireless (LEAP +13.6%) and its valuable spectrum. 2) The odds of a MetroPCS/Clearwire wholesale deal are now lower, and concerns exist a Sprint/Leap deal will diminish Clearwire's (CLWR -7.1%) value to Sprint.
From other sites
Comments (1)
  • dataspectrum
    , contributor
    Comments (32) | Send Message
     
    Sprint needs Clearwire more than it ever has. 1) It can no longer make a 10 x 10 network with PCS, this is why the "H" Block went from being guard band and Sprint's settlement with Dish on the "G" block interference levels walked away from and the FCC "told a twisted truth" in a desperate move to hope they can get the "H" block to have any hope of competing with competitive 10 x 10s from VZ and T and now T-Mo,2) Leap doesn't solve this problem and adds leverage to Sprint, 3) There are other better funded competitors to compete with you for that asset, 4) Sprint will need to begin making $1bn plus payments to Clearwire in 2014 through their EBITDA line. I could go on
    2 Oct 2012, 11:12 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector