5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

Report: T-Mobile Pursues $1B Breakup Fee in Sprint Deal

By Ben Munson | May 12, 2014

As Sprint is reportedly moving ahead with its bid for T-Mobile, Deutsche Telekom (DT) is reportedly requesting a more than $1 billion breakup fee should regulators block the merger.

DT, which owns 67 percent of T-Mobile, is requesting the lucrative safety as well as seeking assurances that the T-Mobile brand and some of its management team would remain in place following the deal, according to the Wall Street Journal.

U.S. regulators, including FCC Chairman Tom Wheeler, offered up strong skepticism about a combined Sprint and T-Mobile after meetings with both SoftBank CEO/Sprint Chairman Masayoshi Son and Sprint CEO Dan Hesse. Policymakers in the U.S. have praised the four-carrier competitive landscape and T-Mobile’s success in rapidly growing its subscriber base have only fueled more reluctance on consolidation.

Both Son and T-Mobile CEO John Legere have indicated further industry consolidation would likely be the only path to the scale needed to take on U.S. wireless industry titans AT&T and Verizon Wireless.

Given government scrutiny and possible upcoming changes to the FCC’s spectrum screen, the companies could hold off on pushing the deal forward until after the 2015 incentive auctions, according to the Journal.

The FCC will decide whether to add an additional 128.5 MHz to its spectrum screen, with 101 MHz of that spectrum belonging to Sprint. That would put the carrier close to or over the spectrum threshold in many markets and making it more difficult to pursue more spectrum or combine its portfolio with T-Mobile.

Breakup fees have helped fund much of T-Mobile’s current market success. When regulators in 2011 shot down AT&T’s $39 billion bid for T-Mobile, Big Blue ended up paying $3 billion, awarding $1 billion worth of spectrum and granting roaming agreements to T-Mobile.

So T-Mobile could stand to gain once more if regulators balk at Sprint’s merger bid. But, so could Dish Network. Dish Chairman Charlie Ergen last week indicated that if the potential Sprint-T-Mobile deal falls through or gets squelched by regulators, then Dish would consider bidding on T-Mobile.


Filed Under: Carriers

 

Next Article

← Previous Article
Next Article →

Related Articles Read More >

eSIM
eSIM eases changing carriers for phones and IoT
QoE and QoS comparison
Benchmarking in 5G: More important than ever
iPhone 12
I bought a 5G phone, now what?
6G
Key takeaways from 6G Symposium

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: Internet of Things
Explore practical strategies for minimizing attack surfaces, managing memory efficiently, and securing firmware. Download now to ensure your IoT implementations remain secure, efficient, and future-ready.

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World