Displaying items by tag: TMobile
Deutsche Telekom’s T-Mobile US has announced that it is financially prepared to close its planned merger with Sprint, based on its previously secured commitments for bridge financing and senior credit facility financing.
The company has been in communication with all banks and is confident that they are ready to fund their commitments to support the closing of the merger transaction. The two telcos continue to drive forward toward closing the merger as soon as possible.
John Legere, CEO of T-Mobile, commented: ‘I’m pleased that right now we have broad support from the banks to finance the closing of this merger. We are very close to unleashing the capabilities of the New T-Mobile, and that is even more important for consumers during the current COVID-19 pandemic.’
The merger will see Deutsche Telekom in effective control of the combined company, controlling more than 69% of the shares: early on in the process, SoftBank gave Deutsche Telekom a proxy for the shares the Japanese company will own in the new T-Mobile US. The original agreement was adjusted last month to reflect Sprint’s declining value.
Legere noted: “Our nation is more dependent than ever on connectivity, and we will continue to deliver our essential wireless service today and when we merge with Sprint, with a nationwide 5G service that is broader and more robust than anything else in America. We can see the finish line and are prepared to close the merger very soon so our teams can get to work building a supercharged Un-carrier.”
T-Mobile and Sprint have said they were taking the final steps to complete a tie-up that reshapes the US wireless industry after a federal court overturned an antitrust challenge.
The decision by US District Judge Victor Marrero rejecting a challenge from New York, California and other states is expected to allow the third- and fourth-largest mobile carriers to complete their merger around April 1, the companies said.
The two firms said in a statement they were "now taking final steps to complete their merger to create the New T-Mobile."
The combined firm with have more than 100 million customers, claiming the scale to compete with larger wireless rivals Verizon and AT&T.
"Today was a huge victory for this merger," said T-Mobile chief executive John Legere, who will head the combined firm before stepping down in May.
"The New T-Mobile will be... great for consumers and great for competition."
The states had filed the suit last June, seeking to block a proposed $26 billion tie-up they argued would cause "irreparable harm" leading to higher costs that would price out low-income consumers.
The judge said however he was "not persuaded" by the contention that the new company would pursue anticompetitive behavior after the deal.
T-Mobile, controlled by Germany's Deutsche Telekom, will hold a majority stake in the new firm after the tie-up with Sprint, which is controlled by Japan's SoftBank.
Backers of the deal have argued that combining T-Mobile and Sprint will create a strong number three US wireless carrier behind Verizon and AT&T, with the resources to invest in 5G, or fifth-generation, networks.
Critics contended it would leave consumers with fewer choices, and lead to higher prices.
"This outcome puts consumers at risk," said John Bergmayer of the consumer activist group Public Knowledge.
"It is more clear than ever that we need strengthened regulatory oversight of the communications industry to protect competition and consumer rights, as well as improvements to our antitrust laws."
Avery Gardiner, a competition fellow with the Center for Democracy & Technology, said on Twitter that mergers that leave just three competitors "are almost always bad for consumers" and "almost always blocked because they 'substantially lessen competition.'"
The deal was approved by federal regulators, contingent on the divestment of Sprint's prepaid division Boost Mobile to the satellite broadcast group Dish, which will begin building a new national wireless network.
Shares of Sprint surged 73 percent on the news while T-Mobile jumped 11.3 percent.
T-Mobile has said the deal would give it the resources needed to invest more in 5G and in-home broadband compete with "Big Cable" firms.
Some analysts have suggested that the final deal may be revalued lower as a result of changing market conditions since it was announced in 2018.
Walter Piecyk and Joe Galone of Lightshed Partners said Sprint may be worth less than the original $26 billion.
"We have repeatedly expressed our view that T-Mobile should renegotiate the price of the deal with Sprint based on the longer than expected approval process and the worse than expected erosion in Sprint's business," the analysts said in a research note.
Ericsson published its Q4 financial results which highlighted that the Swedish telecom vendor did not experience much growth.
The vendor stated that the protracted merger of T-Mobile US and Sprint were to blame for the 9% drop in North America.
However, despite this, Ericsson experienced plenty of growth in the North American region at the beginning of the year.
Ericsson CEO Börje Ekholm commented on this and stated, “Due to uncertainty related to an announced operator merger, we saw a slowdown in our North American business in Q4, resulting in North America having the lowest share of total sales for some time. However, the underlying business fundamentals in North America remain strong.”
The vendor also experienced 1% growth in Q4 and 4% in the overall Financial Year of 2019. Despite their lack of growth in North America, the company did quite well in other markets such as the Middle East and North East Asia.
Their Q4 growth gross margin accounted for 37.1% which is essentially in line with their 2020 target.
In the previous fiscal year, the vendor’s operating income was at a loss of 1.9 billion Swedish kronor and it is now valued at 6.1 billion kronor. Also, the adjusted operating income increased to 6.5 billion kronor compared it the respective quarter last year of 2.6 billion kronor.
There was a decline to 14.5 % in the networks operating margin, which the firm attributes to an increase in investment and the occurrence of the Kathrein acquisition.
Ekholm also added, “Operating income was impacted by increased operating expenses. The increase is related to the Kathrein business acquisition, increased investments in digitalization and added resources to strengthen security as well as our Ethics and Compliance program. For 2020 we expect somewhat higher operating expenses, which will not jeopardize our financial targets.”
Whereas their Q4 net sales increased by 4% and was valued at 66.37 billion kronor compared to the respective quarter last year which (63.81 billion kronor). Sales were adjusted due to currency and comparable units and it was reported that there was a 1% increase year-over-year.
Ericsson has stated that they will be proposing a dividend for 2019 of 1.50 kronor per share at their
Ericsson has stated that at the Annual General Meeting, they will be proposing a dividend of 1.50 kronor per share for 2019. This is an increase compared to the 1.00 kronor per share from 2018.
T-Mobile announced that it became the first to launch 5G wireless service across the United States, although it will be slower than some might expect for the new generation of connectivity. The number three US carrier said its 5G network covers 200 million people and "goes through walls," outperforming the limited 5G deployment of larger rivals Verizon and AT&T earlier this year. While the network is supposedly live today, no one is going to be using it until later this week: the first two phones to support it go on sale this Friday.
"T-Mobile have made very bold promises that can only come to fruition with the vast wireless spectrum holdings, the combined T-Mobile and Sprint will have. State attorneys general who oppose the merger on antitrust grounds are concerned about its potential impact on competition and wireless service prices. However, the promises T-Mobile made today make it difficult for any regulator to continue contesting the merger.
“T-Mobile is promising unprecedented moves for any wireless carrier, which begs the question: Can the New T-Mobile pull this off? The answer is yes. We’ve said all along that the New T-Mobile will result in one of the first and most comprehensive 5G networks in the world given the spectrum assets of both T-Mobile and Sprint. Unlike 4G, emerging 5G networks require carriers to have access to several different frequency bands, in order to meet all 5G’s promises around ultra-high-speed data transmission and latency. T-Mobile has a large swathe of 600 MHz spectrum and will have access to Sprint’s highly coveted 2.5 GHz spectrum, provided the merger closes.
“Among the specific promises made by T-Mobile today, is a 10-year commitment for free 5G access for first responders at every public and non-profit agency, such as police, fire and emergency medical services (EMS). The company also declared that the New T-Mobile will close the ‘homework gap', with a $10bn commitment to offer free online access and hardware to some 10 million homes with children that are without service.
“On the pricing front, the New T-Mobile threw a bombshell at competitors by promising a prepaid service plan at $15 per month for 2GB of high-speed data, 4G or 5G, and 5GB of high-speed data at $25 per month. That heavily undercuts all prepaid service plans, where competition for budget-constrained customers is at its greatest.
“T-Mobile executing on all of these promises will heavily impact AT&T and Verizon, both competitively and in terms of corporate goodwill. These carriers cannot sit back without a response.”
The $26 billion merger deal between US telecommunication operators T-Mobile US and Sprint has received the backing of a key official at the US communications regulator FCC (Federal Communications Commission).
US telecommunications behemoth AT&T has been roundly criticized by its rival operators in the United States who have described its 5G marketing as ‘overhyped’ and ‘misleading’.
US operator Verizon has urged those within the industry to resist the temptation to overhype and subsequently under-deliver on the promise of next-generation technology. In a statement released by Verizon, it’s CTO, Kyle Malady pointed out that whilst new technologies including AI, virtual reality and Internet of Things would all be underpinned by 5G, he stressed the importance of being realistic in terms of what operators can actually deliver in relation to the revolutionary technology.
AT&T launched a mobile 5G service towards the end of 2018, and claimed that it was offering the service to select businesses and consumers in 12 US cities via a mobile hotspot device provided by Netgear. The network operator has adopted an ambitious approach to 5G and was also pushing its 5G Evolution program which promised users speeds faster than your standard LTE.
In addition to this, it was also disclosed in a previous statement by AT&T that Android devices from the operator will display a 5G E logo pop-up on the home screen which would indicate they have connected to AT&T’s 5G evolution experience.
However, critics have claimed that the service provided by AT&T should not be considered as a 5G network offering. Verizon’s CTO said, “If network providers, equipment manufacturers, handset makers, app developers and others in the wireless ecosystem engage in behaviour designed to purposefully confuse consumers, public officials and the investment community about what 5G really is, we risk alienating the very people we want most to join in developing and harnessing this exciting new technology.”
Although not mentioned by name, Verizon’s comments appear to be directed at its main rival AT&T.
Verizon is still preparing for its mobile 5G launch after deploying a fixed wireless access service in October 2018.
In another apparent swipe at AT&T’s Android device move, Malady also cautioned on the industry to only commit to labelling something 5G if new device hardware is connecting the network using new radio technology to deliver new capabilities.
The CTO added, “Verizon is making this commitment today: we won’t take an old phone and just change the software to turn the 4 in the status bar into a 5.”
Also turning up the heat was T-Mobile US, which didn’t pass up the opportunity to seemingly mock AT&T on Twitter, while making the same point as Verizon. “Didn’t realise it was this easy, brb updating,” the operator said on its official Twitter account, with the message accompanied by a video of someone taping a 9G sticker on a smartphone.
Oscilloquartz, an ADVA Optical Networking company, announced today that T-Mobile Netherlands has deployed and fully implemented its OSA 5420 Series, enabling the nationwide rollout of TD-LTE services.
The upgrade empowers T-Mobile Netherlands to meet skyrocketing levels of data demand and also equip its synchronization network in readiness for LTE Advanced Pro, eLTE and 5G.
The OSA 5420 Series grandmaster clocks provide the sub-microsecond accuracy required for next-generation mobile applications as well as an unprecedented level of robustness and scalability. The new solution, which also delivers assisted partial timing support functionality, enables T-Mobile Netherlands to smoothly transition from legacy synchronization technologies.
"Deploying Oscilloquartz's complete sync solution is key to evolving our network. Their unique technology enables us to seamlessly enhance our existing infrastructure and gives us the phenomenally precise frequency and phase synchronization we need as we roll out LTE-TDD, LTE-A and eventually 5G mobile services," said Muzaffer Erdem, transport network solution engineer, T-Mobile Netherlands. "With our customers increasingly demanding advanced voice, video and data applications, high-quality timing in the packet backhaul network becomes paramount.
Leveraging the OSA 5420 Series is the ideal response. It's a highly scalable solution that effectively removes the need for upgrade cycles. It also easily integrated with our existing equipment and proved simple to install. What's more, at every stage in the process, we've been hugely impressed with the excellent support we've received from the Oscilloquartz team."
In order to meet mobile backhaul requirements both now and in the future, T-Mobile Netherlands has deployed the OSA 5420 Series in its core network and at metro aggregation points. By harnessing the latest IEEE 1588v2 Precision Time Protocol (PTP) technology, the solution enables accurate phase synchronization throughout the national infrastructure. This makes emerging technologies possible such as coordinated multipoint transmission for enhanced data availability. Despite its small footprint, the OSA 5420 Series also delivers the highest level of holdover performance available on the market, giving T-Mobile Netherlands the ultimate protection from GNSS outages. For even greater levels of availability and resiliency, the OSA 5420 Series comprehensively supports all major GNSS constellations.
"T-Mobile Netherlands is one of the leading mobile operators in the country, committed to providing the best available services for its customers. Harnessing our synchronization technology for unprecedented levels of precision and reliability enables them to meet soaring demand and offer the most advanced services," said Gil Biran, general manager, Oscilloquartz. "Optimized for edge deployment, our OSA 5420 has enabled T-Mobile Netherlands to push precise synchronization to metro locations where it's most crucial. What's more, our solution supports both legacy interfaces and the latest PTP innovation for a unified network timing architecture. That means T-Mobile Netherlands can ensure a smooth transition to LTE Advanced Pro, while also laying the foundation for 5G and future-proofing the network against further growth in data demand."
Japan-based SoftBank Group’s plans to break off negotiations toward a merger between subsidiary Sprint and T-Mobile US amid a failure to come to terms on ownership of the combined entity, dashing the Japanese technology giant's hopes of reshaping the American wireless business.
SoftBank is expected to approach T-Mobile owner Deutsche Telekom as early to propose ending the talks, according to Nikkei. They had reached a broad agreement to integrate T-Mobile and Sprint, the third- and fourth-largest carriers in the US, and were ironing out such details as the ownership ratio.
The German parent had insisted on a controlling stake, according to a source familiar with the situation. Some at SoftBank were initially amenable as long as the Japanese company retained some influence. But SoftBank's board discussed at a meeting that the company would not give up control. The decision was made to call the talks off.
Sprint's position in the US mobile market is weaker than its No. 4 ranking would suggest. The carrier sits well behind the top two Verizon Communications and AT&T in scale and subscribers. The hope was that a merger with T-Mobile would reinforce Sprint's customer base enough to let it challenge the duopoly while allowing for more efficient network investment. In addition, they have sold or mortgaged most assets.
SoftBank tried to buy T-Mobile in 2014, but the idea was abandoned amid opposition from regulators under then-President Barack Obama. The failure of this latest effort leaves Sprint, which was acquired by SoftBank in 2013, to keep working toward a turnaround on its own.
In early morning trading in Tokyo, SoftBank shares fell to 9,830 yen, down 5.8 percent from Monday's closing price. The share price had risen to 10,550 yen on Monday (Nov. 30), a 17-year high since the burst of the dot-com bubble. The shares closed the morning session at 9,921 yen, down 4.9 percent.
"Investors were buying SoftBank partially on the merger hopes, so the news has a negative impact. It will be difficult to maintain the stock price over the 10,000 level," said Tomoaki Kawasaki, senior analyst at Iwai Cosmo.
T-Mobile recently announced plans to roll-out its new 600MHz LTE network in the US, leveraging the massive haul of super-premium low-band spectrum the operator won in the government broadcast incentive auction concluded earlier this year. The announcement came just two months after the company received its spectrum licenses from the FCC.
The first of T-Mobile’s 600MHz LTE network sites were switched on in Cheyenne, Wyoming using Nokia equipment. Starting in rural America and other markets where the spectrum is clear of broadcasting, T-Mobile plans to deploy the new “super spectrum” at “record-shattering pace” – compressing what would usually be a two-year process from auction to consumer availability into a short six months.
The operator said additional 60MHz sites are slated for locations including Wyoming, Northwest Oregon, West Texas, Southwest Kansas, the Oklahoma panhandle, Western North Dakota, Maine, Coastal North Carolina, Central Pennsylvania, Central Virginia, and Eastern Washington. Those deployments and other network upgrades will help T-Mobile increase total LTE coverage from 315 million Americans today to 321 million by the year’s end, it predicts.
“Earlier this month, wireless customers coast to coast proved T-Mobile already delivers America’s best unlimited network. We swept the competition in OpenSignal’s report on all counts—a global industry first. And that was before we started lighting up the world’s first 600 MHz LTE network,” said John Legere, president and CEO of T-Mobile.
To meet this aggressive timeline for getting this “super-spectrum” into customers’ hands, T-Mobile said it has been coordinating closely with infrastructure providers, chipset makers and device manufacturers to bring 600 MHz LTE to customers at breakneck speed. Nokia and Qualcomm have launched new technology, and both Samsung and LG plan to launch phones that tap into this new spectrum in the fourth quarter of this year.
T-Mobile is also working closely with the Federal Communications Commission (FCC) and broadcasters like PBS to clear the spectrum in record time, investing where necessary to preserve programming consumers care about while paving the way for new wireless coverage and competition for consumers.
“To work with T-Mobile in lighting up the world’s first 600 MHz LTE network is a momentous achievement,” said Rajeev Suri, President and Chief Executive Officer of Nokia. “We knew this spectrum would be key for covering wide areas, providing bandwidth in hard-to-reach places, augmenting capacity and improving data speeds, so we began testing and readying 600 MHz network infrastructure equipment and software long before the incentive auction was over.”