Sprint shares come down to $4.49 post T-Mobile, AT&T deal (US)

On 03.25.11, In Mobile, By Editor

Sprint Nextel Corp.s’ shares have gone down following AT&T Inc.’s $39 billion offer for T-Mobile USA.

Sprint came down by 11% to $4.49 since the T-Mobile USA deal was announced on March 20.This signals that investors can buy Sprint for 92 cents on the dollar, cheaper than 99% of companies in the Standard & Poor’s 500 Index excluding financials, according to data compiled by Bloomberg.

Sprints’ licenses from the U.S. Federal Communication’s Commission, which give it the right to operate its network in specific regions, alone are worth $19.9 billion, 46% more than its market capitalization of $13.6 billion.

AT&T’s purchase of T-Mobile USA from Deutsche Telekom AG will give the combined company more than double the customers of Sprint, while Verizon Wireless has almost twice the market share. As per analysts, to boost value, Sprint may buy the remaining stake in partner Clearwire Corp. or another carrier such as MetroPCS Communications Inc. It may also become a target for Verizon as carriers that run on the same network technology.

 

 

 

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Best Buy inks 4G wireless deal with Falcone’s LightSquared (US)

On 03.24.11, In Mobile, By Editor

LightSquared Inc owned by billionaire Philip Falcone has signed a deal with Best Buy under which the retailer will offer 4G service via the LightSquared network.

According to LightSquared Chief Executive Officer Sanjiv Ahuja, Best Buy’s Connect mobile-broadband service will begin testing LightSquared’s network in next year’s first quarter.

LightSquared is planning to compete with AT&T Inc., Verizon Wireless and Clearwire Corp. in selling its 4G wireless service that offers faster Internet browsing.

As per Ahuja, LightSquared plans to spend $14 billion on its network over the next eight years. Last month, the company announced $586 million in new funding from UBS AG and JPMorgan Chase & Co. that will help its network build out.

According to LightSquared, it has agreements with five customers to provide wholesale 4G service, including two carriers, a national retailer, a device manufacturer and a website.

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Sprint deal does not affect Verizon, says CEO

On 03.22.11, In Mobile, By Editor

The chief executive of Verizon Wireless has stated that he has no interest in buying Sprint Nextel Corp even as the company stands to lose its top position in the U.S. wireless market because of a merger between AT&T Inc and T-Mobile USA.

According to Verizon Wireless CEO Daniel Mead, he would not oppose AT&T’s plans to buy Deutsche Telekom’s T-Mobile USA for $39 billion.

The CEO added that the company did not want to be distracted from its goal of being the most profitable U.S. wireless operator. Verizon Wireless is a joint venture of Verizon Communications and Vodafone Group. They are not interested in Sprint. They don’t need them.

As per Mead, U.S. regulators would likely approve the AT&T/T-Mobile deal if the companies agreed to certain conditions. AT&T is expected to have to sell some assets in order to get regulators to approve the deal. Anything can go through if you make enough concessions.

 

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Sprint, Deutsche Telekom in talks over T-Mobile USA Merger

On 03.10.11, In Mobile, By Editor

If sources are to be believed, Deutsche Telekom AG (DTE) has held talks to sell its T-Mobile USA unit to Sprint Nextel Corp.(S) in exchange for a major stake in the combined entity.

According to sources, talks have been on and off, and a deal may not be reached. The sources added that the companies haven’t been able to agree on the valuation of T-Mobile USA, which reported a drop in profit in the fourth quarter.

 

 

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AT&T CFO Lindner to step down in June

On 03.05.11, In Mobile, By Editor

AT&T Inc has announced that its Chief Financial Officer, Rick Lindner will retire June 1 and will be replaced by Controller John Stephens.Lindner has served as CFO since 2004.

Stephens, a 19-year veteran of the telecommunications company, has been AT&T’s controller since 2001.

According to AT&T Chief Executive Randall Stephenson, Rick and John have worked together closely for more than 15 years, and they expect a seamless transition.

In January AT&T, the No. 2 U.S. wireless carrier behind Verizon Wireless, projected earnings growth for the year that was less than analysts’ expectations. AT&T’S investors have been unnerved since word emerged that Verizon would begin carrying Apple’s popular iPhone, ending more than three years of U.S. exclusivity for AT&T.

AT&T, which is heavily dependent on iPhone, forecast 2011 earnings per share growth in the mid-single-digit percentage range.

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AT&T plans to offer daily deals

On 03.03.11, In Mobile, By Editor

AT&T Inc. has announced that its YP.com online directory is planning to offer daily discounts similar to Groupon Inc. within the next two months, as it looks to tap into the red-hot local deal market.

The success of Groupon, which turned down a $6 billion takeover offer from Google Inc. last year and could be worth nearly three times that amount if it goes public, has attracted a horde of large companies and start-ups hoping to emulate its model. AT&T is hoping its large network of local salesmen, advertisers and users will give it an edge.

According to AT&T Interactive Chief Executive David Krantz, they think they can be a fast follower. It’s about getting the pieces together.

Groupon and other sites including LivingSocial offer deep discounts to everything from clothing stores to wine classes. By promoting one deal a day in each market and capping how many of those deals can be purchased, the sites create demand and interest. Retailers benefit because consumers typically have to pay in an advance, guaranteeing income.

Krantz added that AT&T is still working out a deal with a smaller technology company to help manage the distribution and tracking of each coupon. Similar to Groupon, AT&T plans to offer one deal a day in each local market on YP.com, which was previously known as YellowPages.com.

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US Supreme Court rules against AT&T corporate privacy rights

On 03.02.11, In Mobile, By Editor

The US Supreme Court has ruled that AT&T Inc and other corporations do not have personal privacy rights to prevent disclosure of federal government records about them.

The Justice unanimously overturned a ruling by a U.S. Appeals court for the telecommunications company that corporations can assert personal privacy in claiming that the records should be exempt from disclosure.

The high court, in an opinion written by Chief Justice John Roberts, agreed with the Obama administration’s argument that the personal privacy exemption under the Freedom of Information law applied only to individuals, not to corporations.

Public interest groups supported the government. They stated that under AT&T’s position, government records could be withheld about coal mine safety violations, offshore oil rig problems, dirty conditions at food manufacturing plants and questionable investment bank financial dealings.

Business groups supported AT&T and stated that corporations have long enjoyed a range of rights, including privacy rights. AT&T argued that the Federal Communications Commission should keep all the records secret during an investigation into its participation in the federal E-Rate program, which helps schools and libraries get Internet access.

AT&T told FCC in 2004 that an internal investigation had revealed certain irregularities in the company’s billings to a Connecticut school under the program.

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Deutsche Telekom posts net loss in Q4 (Germany)

On 02.28.11, In Mobile, By Editor

Europe’s largest telecommunications company, Deutsche Telekom AG has reported a net loss in fourth-quarter, depressed by eastern and southern European operations and asset writedowns.

The company recorded a net loss of US$803 million, compared with a loss of US$4.12 million a year earlier while analysts had predicted  a net income of US$750.47 million. Adjusted earnings before interest, taxes, depreciation and amortization dropped 10% to US$6.25 billion, trailing the US$6.46 billion average estimate of 19 analysts.

Profit was weighed down by US$1.78 billion in one-time costs including US$611.65 million to write down the value of assets in Romania and in Greece, where Deutsche Telekom owns 30% of Hellenic Telecommunications Organization SA.

According to the company, it needs until as late as early 2012 to solve U.S. structural” problems, whereas it struggled to keep AT&T Inc. and Verizon Wireless from winning over customers.

As per the analysts, while it was clear that there would be impairments in Greece given the situation there, the high amount came as a surprise.

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Consumer Reports confirm Verizon iPhone 4 defect (USA)

On 02.28.11, In Mobile, By Editor

Consumer Reports have revealed that the Apple Inc. iPhone 4 carried by Verizon Wireless suffers from a problem similar to the one that plagued AT&T Inc.’s version — it may result in dropped calls in certain areas.

After testing the phone, which was released this month, Consumer Reports stated that it won’t include the device on its list of recommended smartphones.

According to Consumer Reports, published by Yonkers, New York-based Consumers Union, the Verizon iPhone 4 closely resembles the original AT&T iPhone 4 in many positive respects which includes offering great multimedia functionality, a sharp screen and the best MP3 player they have seen on a phone. Unfortunately, it also shares with its sibling the possibility of compromised performance in low-signal conditions when used without a bumper or a case.

The group added that the iPhone, which first hit stores in 2007, has become Apple’s best-selling product. It accounted for 39% of $26.7 billion in total sales in the most recent quarter. Calls may be dropped when the phone is gripped in a way that affects the phone’s signal strength.

Consumer Reports also stated that the device performs superbly in most respects and using a case can fix the signal.

Consumer Reports similarly didn’t recommend the iPhone 4 when it was released for AT&T last year, citing an antenna design flaw that led to dropped calls. Apple Chief Executive Officer Steve Jobs apologized and offered customers free cases to help fix the problem with the AT&T phones.

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Sprint, Falcone’s LightSquared in talks over network agreement

On 02.25.11, In Mobile, By Editor

If sources are to be believed, Philip Falcone’s LightSquared Inc. wireless venture is in discussions to use Sprint Nextel Corp.’s cell sites and equipment to help build out its network.

LightSquared, backed by billionaire Falcone’s Harbinger Capital Partners hedge fund, is seeking to compete with AT&T Inc., Verizon Wireless and Clearwire Corp. in selling so-called fourth-generation wireless service that offers faster Internet browsing. Sprint buys 4G capacity from Clearwire. AT&T and Verizon are building out their own 4G networks this year.

Falcone has committed billions to challenge LightSquared’s larger and more established rivals and he is facing government deadlines for building out his network.
Falcone agreed last year to Federal Communications Commission conditions that he employs a combination satellite-terrestrial network for as many as 100 million Americans by the end of 2012 and 260 million by 2016.

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