Sprint’s CEO sees “logic” in potential LTE-based merger with T-Mobile USA 21
In an interview with The Financial Times, Dan Hesse, Sprint Nextel’s CEO, discussed the company’s potential adoption of the LTE (for Long Term Evolution) 4G wireless technology for mobile phones. This technology has already been selected by T-Mobile USA (as well as Verizon Wireless and AT&T), although Sprint’s current 4G technology is based on the competing WiMAX standard.
The move toward LTE by Sprint led the Financial Times to ask Hesse about possible merger opportunities for the third (Sprint) and fourth (T-Mobile) largest US carriers. According to the Financial Times piece, "Mr Hesse accepted there was a 'logic' to a merger between Sprint and T-Mobile USA if they were both using the same 4G technology, but declined to comment about deal activity." The FT also notes that while Sprint has enough radio spectrum to roll out both 4G technologies, T-Mobile USA may not, further encouraging the merger. (This is quite a different situation from that which we reported last September, when T-Mobile’s parent Deutsche Telecom was considering purchasing Sprint.)
Given that there aren’t any (current) webOS devices using either 4G standard, the implications of this potential technology adoption and merger for the Palm community aren’t clear. Should Sprint switch to LTE, though, it would make the likely 4G hardware path for Palm much clearer, with all four (or three, if the Sprint/T-Mobile merger happens) major US carriers on a single standard, and could even help get webOS devices onto T-Mobile, where they currently don’t yet work officially.
Source: Financial Times; via Engadget and webOSroundup
21 Comments
wow sprint cant make up their minds
It was their plan all along to implement WiMax but leave room on the towers to add LTE and add it later if they felt the need. From a cost perspective, it would not be like rebuilding the network over again from scratch and they'd have the benefit of marrying the technology to the solution sold to customers.
Keep in mind that the WiMax network in question is being used by Sprint, Clear and a few of the cable providers like Time Warner. Sprint uses it for cell and some data. Clear uses it for home based data and phone as well as mobile data. They also have a plan to expand their offerings into cellular phones. That brings us to the cable companies who use it for mobile data and may use it for cellular phone later on.
So WiMax will stay put and adding LTE could only be seen as a plus because then Sprint can merge with T-Mo and run on LTE and opportunistically use WiMax for home-based services that neither AT&T nor Verizon would use due to their dependency on landlines. And knowing what Clear has lined up for wireless it's a lot more than just broadband into people's homes so WiMax does not have to die in order for LTE to live.
ppffff
Oh, that would sting if the Wimax buildout was stillborn in the face of LTE being adopted by Sprint. All those Evo owners paying $10 more a month, never to even have 4G!!. Ooohhh the humanity!
I've been hearing a lot of chatter about Sprint/TMO. One of the new services expected TMO name to disappear in the next year and a merger/aquisition by Sprint was the most likely culprit.
Sprint wouldn't actually stop supporting Wimax, don't be foolish.
They wont stop supporting existing wimax, but the burden of expanding the buildout will move to their partners and cable companies are not known for any entreprenurial spirit. If Sprint adopts LTE, I'd expect them to sell off their Wimax interest, carry and support via contract like they do with EVDO now. They learned their lesson trying to keep Nextel running behind their primary operations.
Long way to go. This would be tight in the FTC to lose another carrier in the wireless market. Its probably these two scrapping for contracts that keep ATT and VZ from jacking up to $150 a month for smart phones. Tough call. Odd mix too, for GSM vs. CDMA, sub-Edge vs. EVDO and start-up Wimax vs. nothing of note for 4G. Total technical separation, like Sirius and XM.
yes sprint buy t-mobile!! and switch over to LTE!
Here we go again...
Oh sweet Jesus...I actually like T mobile. Their plans are really reasonable and they have insane amount Google phones. They are the only ones without a Palm phone. So it makes sense. could it be that Sprint is waiting for the first LTE Palm Pre, The next generation? that would best any Android easy.
We'll see
Any Palmcast tonight?
This would be a double edged sword for tmo/sprint customers. On one hand it could potentially offer better coverage and service to its subscribers. On the other hand, less competition wouldn't be good, and who knows if they would keep their competitive prices if they form as one company.
Isn't WiMAX hardware just a software update away from supporting LTE anyway? I was under the impression that it would be quite easy for Sprint to switch if they wanted to.
check this article...
and this..
http://moconews.net/article/419-clearwire-preps-for-the-possibility-of-m...
Looks like more nonesence to me =/
what is this article about...or based on thin air...im sorry but since the rumor report about us getting from sprint our webos update what was wrong...and then this... Somehow it messed up my loyality to this site in the past I came two to three times a day on this site now I have to force myself to come here... First of the deutsche telekom has more cash then god
if they would want to sell t mobile they would sell it for top dollars or if t mobile is losing more ground then they are making sound...
sorry but take some more pride in your reports pre central seriously palm aint no small time company anymore give us fun articles give us entertainmebt tripple check and fimd evidence for rumors and just don't read what twitter has to say..geezzz
LOL!
What we reported on was a (linked) interview by The Financial Times. The merger speculation was raised by FT, and not denied by Sprint's CEO. Hardly "what twitter [sic] has to say."
This would be sweet. Right now we've got 2 unstopoble monoliths with billions upon billions of dollars who dominate the carrier market: Verizon and AT&T. And then you have little ol' Sprint, and yeah, there's the even-tinier-T Mobile... aww, isn't that cute? They think they stand a chance! Adorable! Sprint has 48 million customers- and that number only goes down down down. T-Mobile has just shy of 34 million. AT&T? 85 Million. Verizon? Nearly 93 million. Sprint and T-Mobile combined would be 81 million. That's 4 million shy of AT&T- and let's face it, building and maintaining a better network than AT&T takes so little effort it's not even worth talking about. The only reason AT&T hasn't seen churn rates through the roof is iPhone exclusivity, and if that isn't over by June of next year I'd be shocked. There's no way it can go on much longer- AT&T will soon have to relinquish their death grip on the iPhone (sorry, I had to make the joke). We need all the competition among carriers we can get- and right now there's very little to speak of. Now, the way this would have to work is T-Mobile (technically Deutsche telecom as they own tmobile) gbuying Sprint and taking over most of their decisions- Sprint has a history of stupid, uslesd billion-dollar aquisotions, pointless sponsorship, and plain old mismanagment. They're building an insanely expensive WiMax network and are gonna scrap it for LTE, costing even more money and they're already strapped for cash. Maybe they could, oh I don't know... Gone with LTE in the first place! Sprint is a clusterfuck of a company- T-Mobile hopefully will set em straight.
>>Gone with LTE in the first place! Sprint is a clusterfuck of a company- T-Mobile hopefully will set em straight.
Awesome
Yeah and Ford/Boeing are going to combine to produce hybrid plane-car