KCRag Forum

SK Telcom in Korea?

http://kansascity.bizjournals.com/kansa ... rround=lfn

Reuters says there are no talks of acquisition, just technology collaboration.

http://biz.yahoo.com/rb/080715/sprint_sk.html?.v=2

If someone must acquire Sprint, it may be best for KC if it were a foreign telcom company.  Few jobs would be impacted in KC as the national HQ would still be here. If another US telcom merges/buys Sprint, could be devastating for KC job-wise.

Rumors or Sprint's acquisition are frequent and have been standard fare for years.  I think some folks just can't believe that a telecom from KC would have legs or be able to compete.

missingkc wrote: Rumors or Sprint's acquisition are frequent and have been standard fare for years.  I think some folks just can't believe that a telecom from KC would have legs or be able to compete.

...especially after so many tactical fumbles and actually losing subscribers (and the one thing they exceeded all competitors in: ARPU). why on earth would people lack confidence?

missingkc wrote: Rumors or Sprint's acquisition are frequent and have been standard fare for years.  I think some folks just can't believe that a telecom from KC would have legs or be able to compete.

Well, compared to Verizon and ATT, IS the telecom from KC really competing?  Yes, it IS still in business, but how much competition IS Sprint?  How much of a threat?

Is it even possible for an American company to buy Sprint?  The only technologically compatible company is Verizon, and with the Alltel acquisition I can't imagine the regulators would also let them buy Sprint.  It would get us a dangerous close to duopoly.

SK makes the most sense technically, but another wealthy foreign company might be able to afford to switch Sprint to GSM - especially with the dollar in free fall.

Interesting that SK sold Helio out to Virgin Mobile, and now they are possibly onto Sprint.  Helio I think did use a majority of Sprint towers for service. 

If anything, I think if SK did buy out Sprint, there would be an immediate difference in Customer Service Quality.  I've dealt with Helio (US) and SK in Korea, and they are extremely friendly and knowledgable.  But, that is just speculation on my part.  Who knows.  But one thing is for sure, I will not ever sign on with Sprint again until they improve their customer service.

skim82 wrote: Interesting that SK sold Helio out to Virgin Mobile, and now they are possibly onto Sprint.  Helio I think did use a majority of Sprint towers for service. 

helio and virgin mobile are MVNOs that use sprint's network exclusively in the US.

Rumors of Deutsch-Telekom possibly buying Sprint-Nextel. They already own T-Mobil, the fourth largest carrier, while Sprint is the third largest.

http://www.kansascity.com/637/story/1446516.html

Comcast has had on/off again interest in Sprint too...
http://gigaom.com/2009/09/14/comcast-should-buy-sprint/

Not sure which would be best for KC.  If a foreign company bought Sprint, it would be best for KC if it were one that does not already have US operations because the Sprint HQ would pretty much remain intact.  If DT bought Sprint, KC and Seattle would be fighting for the HQ and jobs.

If a US cable company bought Sprint, it would probably only be executive high level management impacted in terms of KC jobs.

Sprint now apparently in talks to merge/buy Tmobile.  It's almost inevitable this will happen in 1-5 years if they are to compete with ATT/VZW.  Sprint will eventually go to LTE anyway as CDMA will eventually go away - though could take 10 years.

Hope the HQ stays in OP no matter what happens.

http://www.reuters.com/article/2011/03/ ... 6N20110308

D I S T R A C T I O N

Perhaps but likely not.  CDMA will eventually go away someday and Sprint has to essentially go LTE eventually.  It makes sense that they merge with Tmob to compete with ATT/VZW long term.  It may not happen soon but I'd bet they will merge in some form eventually.  Tmob has no spectrum and is now slightly losing customers. Sprint is starting to turn around but has no money to build out another network.  The two can combine and Tmob's German parent can help fund.  Of all the options they have, including continuing going alone, combined is the only real way to compete down the road.

I'll place a virtual bet that in 5 years or less the two will be combined (or parts of each).  Will pull up this thread/post _when_ it happens.  :)

Maybe the Sprint Campus will be filled by then and they can lease space in downtown KC.

brewcrew1000 wrote: Maybe the Sprint Campus will be filled by then and they can lease space in downtown KC.

More like Sprint Prison will empty out and Downtown KC will move there.

If Deutsche Telekom (Tmob parent company) gets >50% control of a merger, KC might lose the HQ and eventually a huge chunk of the jobs - as well as all of the supporting/consulting companies here that provide services to Sprint.  It would have a massively negative impact on the KC economy.  But the Feds probably won't allow a foreign company to have >50% control.  I suspect DT will dump Tmob off to Sprint and get out of the US market, which could mean the HQ stays in KC.

They must merge.  Cricket, etc will eat them on the economy end and ATT/VZW  are better positioned to invest on the high end.  Sprint/Tmob need to decide if they want to be an economy carrier or compete on the higher end.  They can compete if they merge - no way if maintaining separate paths.

Kansas is better off saving their HQ enticement dollars to keep Sprint than to lure AMC.  The regional economic impact of Sprint is huge, AMC isn't even on the radar.  And if Seattle loses the HQ, KC likely gets far more jobs over the years.  The merger will be good for KC if it keeps the HQ and disastrous if not.

ignatius wrote: Sprint/Tmob need to decide if they want to be an economy carrier or compete on the higher end.  They can compete if they merge - no way if maintaining separate paths.

Or Sprint could continue to be both an economy carrier and compete on the higher end, as it does now with Virgin and Boost in the economy end and Sprint in business and non-economy consumer. It's a viable strategy, but Sprint has struggled nonetheless for several reasons, including bad bets on Nextel, Clearwire and WiMAX, and a ho-hum handset line-up.

ignatius wrote: If Deutsche Telekom (Tmob parent company) gets >50% control of a merger, KC might lose the HQ and eventually a huge chunk of the jobs - as well as all of the supporting/consulting companies here that provide services to Sprint.  It would have a massively negative impact on the KC economy.  But the Feds probably won't allow a foreign company to have >50% control.  I suspect DT will dump Tmob off to Sprint and get out of the US market, which could mean the HQ stays in KC.

The article in the paper suggested a deal would be structured in a way that allows Sprint to buy Tmob and DT would earn an interest in the combined company.  That is speculation as is whether or not it would be a controlling interest. 

One thing that could hurt KC's chance of retaining the combined International company would be lack of direct flights to and from Europe. 

KC0KEK wrote: Or Sprint could continue to be both an economy carrier and compete on the higher end,

Sprint or Tmob can't compete with ATT/VZW giant pots of money.  Combined they could more likely compete but individually, no way.

Highlander wrote: The article in the paper suggested a deal would be structured in a way that allows Sprint to buy Tmob and DT would earn an interest in the combined company.  That is speculation as is whether or not it would be a controlling interest. 

Other sources say DT has been pretty adamant about wanting >50% control - they'd be foolish not to.  But the Feds probably wouldn't let them, which makes me wonder if DT will dump Tmobile in the end some day (to Sprint or not) and exit the US market.

One thing that could hurt KC's chance of retaining the combined International company would be lack of direct flights to and from Europe. 

Does Seattle have a direct flight to Bonn Germany?  If not, it doesn't matter if they transfer in Frankfurt Germany to Seattle or say Chicago to KC, would be an extra hop either way.