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DT must sell T-mobile or pony up $10B

temnik

Jul 4, 2005, 8:57 AM
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disturbed1

Jul 4, 2005, 9:29 AM
Cingular couldn't possibly buy out T-Mobile too. Not this soon after the major AT&T buyout. It wouldn't financially or technically prudent (trying to integrate 3 networks?!?!?!?). Not to mention it'd never pass the FCC and DOJ's antitrust inspections.

Besides let's think here, there are currently 5 major players in the U.S. market. With the Sprint-Nextel merger that's gonna fall to 4 very soon. If Cingular, or any of the other major carriers, bought out T-Mobile too.....

Do we really want the competition to go down to 3 BIG companies? Think of the prices! It'd be like OPEC jackin up the price of oil and screwin our price at the gas pump.
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elihuspeaks

Jul 4, 2005, 12:43 PM
It wouldn't go to an American carrier. Deutsche Telekom in considering selling T-Mobile USA to Vodafone. Check out the T-Mobile forum. There was a discussion about this the other day with links, etc.
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RUFF1415

Jul 4, 2005, 12:49 PM
I was under the impression that Deutsche Telekom was NOT considering selling T-Mobile USA to Vodafone, considering the fact that would put Vodafone (a major competitor) even further ahead in the global roaming game.

However selling T-Mobile USA to Vodafone would definitely make things interesting, considering Vodafone's stake in Verizon Wireless. If Vodafone did win the bid for T-Mobile USA, they could very well pull their share in Verizon Wireless and leave Verizon Corp. with full ownership once again.
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RUFF1415

Jul 4, 2005, 12:52 PM
This would, by the way, be very damaging to Verizon Wireless as Vodafone is a VERY deep-pocketed financial backer. With Verizon Corp. only dishing out the money, it may become a struggle to keep spending like the company always has.
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davidg4781

Jul 4, 2005, 10:35 PM
Why would Cingular have to intergrate them if they bought them out? Disney owns ABC, Disney, and A LOT of other stuff. Clear Channel owns newspapers, talk radio station, music radio stations, I believe TV stations, and billboards. Cingular can buy them, and let them stay independent of Cingular's system.

And have you never heard of the Rule of 3s? Usually, companies like this, when government keeps their filthy hands off of market demands, after all the dust has settled, 99% of the time, there will be three companies left. Of course, this isn't counting small, regional companies. Looks like this is the way it's going.

It's a shame government tries to butt in on private business conducting business with private individuals. Ir...
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RUFF1415

Jul 4, 2005, 10:52 PM
The most logical reason for Cingular to buy T-Mobile would be to improve coverage to compete against the competition. If they left the networks unintegrated the purchase would be pointless. They would be drowning in debt with no new revenue, and nothing else but the title to a company eating its money. The profit T-Mobile would create for Cingular would be worthless considering the cost Cingular would have to pay.
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muchdrama

Jul 5, 2005, 8:40 AM
davidg4781 said:
Why would Cingular have to intergrate them if they bought them out? Disney owns ABC, Disney, and A LOT of other stuff. Clear Channel owns newspapers, talk radio station, music radio stations, I believe TV stations, and billboards. Cingular can buy them, and let them stay independent of Cingular's system.

And have you never heard of the Rule of 3s? Usually, companies like this, when government keeps their filthy hands off of market demands, after all the dust has settled, 99% of the time, there will be three companies left. Of course, this isn't counting small, regional companies. Looks like this is the way it's going.

It's a shame government tries to butt in on private business conducting b
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davidg4781

Jul 5, 2005, 9:31 AM
What's wrong with Cingular having too much spectrum in too many markets? And, either way, Cingular would be keeping their spectrum and T-Mobile would keep theirs. This may be a good idea since they can roam on each other's towers at deeply discounted rates, if that's possible. T-Mobile wouldn't have to change anything though. When Disney bought ABC, pretty much everything stayed the same. All they'd be doing is taking a risk in the hopes of profits in the future. Now, I haven't looked at the numbers too good. If I remember, T-Mobile is worth about $70Billion (that may be DT all together, not just TM) and is losing about $300Million a year. Those numbers aren't too exciting.
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IH8SAMSON

Jul 5, 2005, 11:37 AM
Apparently you have not read the numbers, but its ok, just spout some off anyhow.
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muchdrama

Jul 5, 2005, 11:41 AM
IH8SAMSON said:
Apparently you have not read the numbers, but its ok, just spout some off anyhow.


He's busy playing "Fantasy Carrier Monopoly".
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davidg4781

Jul 6, 2005, 1:08 AM
I got their numbers from their financial reports. Although, like I said, the numbers may be for DT, not the T-Mobile division. I just glanced down the report, since it was late, I was tired, and I'm neither getting paid or credit for this.
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muchdrama

Jul 5, 2005, 11:40 AM
davidg4781 said:
What's wrong with Cingular having too much spectrum in too many markets? And, either way, Cingular would be keeping their spectrum and T-Mobile would keep theirs. This may be a good idea since they can roam on each other's towers at deeply discounted rates, if that's possible. T-Mobile wouldn't have to change anything though. When Disney bought ABC, pretty much everything stayed the same. All they'd be doing is taking a risk in the hopes of profits in the future. Now, I haven't looked at the numbers too good. If I remember, T-Mobile is worth about $70Billion (that may be DT all together, not just TM) and is losing about $300Million a year. Those numbers aren't too exciting.


What's ...
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davidg4781

Jul 6, 2005, 1:10 AM
No, Cingular customers wouldn't be allowed to use the T-Mobile spectrum. Aren't they on different frequencies anyway?
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RUFF1415

Jul 6, 2005, 1:12 AM
No, Cingluar uses both the 850 and 1900 bands, as T-Mobile uses 1900 also.
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davidg4781

Jul 6, 2005, 1:19 AM
Well, that makes some sense. Maybe Cingular can use some intestinal fortitude and tell the FCC to pound sand. Government shouldn't be interfering in businesses that aren't forcably or fraudulently taking life, liberty, or property from people.
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RUFF1415

Jul 4, 2005, 12:56 PM
This is very interesting, and there are many different routes that can be taken.

If the rumor's of Vodafone possible buying T-Mobile USA are true, this would give Vodafone a reason to pull out of their stake in Verizon Wireless, leaving Verizon Corp. with full ownership. Verizon Wireless losing such a deep-pocketed financial backer as Vodafone would potentially damage their forward progress, at least a the rate it has been going.

I also believe that Comcast is a very viable buyer for T-Mobile. Comcast and T-Mobile have already had an incredible amount of partnerships, joint projects, and co-opperated networks. That article stated that a cable company may be seeking to get into the wireless industry and this would give Comcast the pe...
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