A Potential Sprint/T-Mobile Merger Called A “Total Disaster”

“Analysts are targeting Sprint and T-Mobile for a merger because both are struggling to gain subscribers. But simply merging the two companies would be a total disaster. Let’s start with technology.  The companies use different, totally incompatible radio networks and have different 3G and 4G spectra.  Sprint is still struggling with the iDen network it acquired as part of its disastrous 2005 merger with Nextel.  Managing the “synergies” of that merger set the company back competitively by years.  The combined entity would have to deal with 850, 1700, 1900 and 2600 Mhz spectrum and iDen, CDMA, WiMAX, GSM, HSPA+ and potentially LTE radios. There is absolutely zero room there for efficiency, and tremendous room for headaches.” [PCMag.com, 3/9/11]

Analyst Recognizes Sprint Has Own Problems to Resolve Before It Can Merge With T-Mobile

Mike McCormack, Nomura: “We continue to believe that Sprint faces significant hurdles in its own organic turnaround and that the introduction of a merger with T-Mobile USA would further exacerbate the challenges it faces.” [Wall Street Journal, 3/8/11]

Sprint/T-Mobile Merger “Is the Worst Idea Ever”

“[A] union between the companies would likely result in disaster. Sprint and T-Mobile’s 3G networks are completely incompatible, and at the moment the companies are also pursuing completely different 4G strategies…Having the separate networks coexist under a single company sounds like a major headache, and it would be years before Sprint and T-Mobile subscribers could coexist on the same network.”  [MobileBeat.com, 3/8/11]