Re: Possible Sprint Buy-out by Deutsche Telekom
The market analysts have too much time on their hands IMO. DT aquiring Sprint may look good on paper at first considering the value of the Euro is much stonger than the American Dollar and DT would be getting one heck of a good deal with Sprint but then you have to look at the long term ramifacations and cost impact of such an aquisition.
Sprint had enough of a problem engulfing Nextel and those problems are still here and won't go away over night but it looks like Hesse has things starting to head in the right direction. But at that time Sprint Nextel had to deal with 2 companies, 2 different network technologies, 2 billing platforms, 2 cultures and 2 completely different subscriber bases and they're still working through those issues. Now Imagine if DT comes in; instead of 2 of everything it'll now be 2 1/2 companies, 3 network technologies, 3 billing platforms (soon to be 2 as when P2K to Ensemble migrations are complete), 3 cultures, 3 completely different subscriber bases and a partridge in a pear tree.
The long term effects of such an aquisition would be incredibly challenging and very expensive to DT. I personally don't see this happening and don't want this to happen but then again everyone said the same thing about Sprint and Nextel "merging" so I guess we can never say never...
|