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Home - Carrier Wrap: Iliad still interested in T-Mobile US?
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Carrier Wrap: Iliad still interested in T-Mobile US?

by Dan Meyer September 22, 2014
written by Dan Meyer September 22, 2014 Share
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T-Mobile US’ ownership future remains in limbo as published reports indicate French operator Iliad has set a mid-October deadline to decide whether to improve on a previously offered — and turned down — offer to acquire a stake in the U.S.-based operator.

According to Reuters, sources claim the deadline comes as current T-Mobile US parent company Deutsche Telekom doubts a more appealing offer will be provided. Iliad had put in an offer reported at $15 billion, or $33 per share, to gain a controlling stake in T-Mobile US, which was quickly shot down by DT. That offer came just ahead of Sprint’s decision to not attempt a takeover of T-Mobile US due to potential regulatory hurdles.

Iliad has since been linked to banks and other investors in an attempt to raise its offer for T-Mobile US. DT is reportedly looking for at least $35 per share for a stake in T-Mobile US. T-Mobile US’ stock (TMUS) is currently trading at below $30 per share.

—Alaskan telecommunications provider General Communications Inc. recently signed a nationwide LTE roaming deal with T-Mobile US, providing the rural operator with access to LTE services across T-Mobile US’ expanding network. The deal also gives T-Mobile US LTE access to the tough-to-cover Alaska market.

T-Mobile US recently said its LTE network had surpassed 230 million potential customers covered, on its way to 250 million pops covered by the end of this year.

GCI announced a partnership in 2012 with in-state rival Alaska Communications Systems Group to combine their operations under a new entity dubbed Alaska Wireless Network. AWN was tasked with designing and operating a statewide wireless network to provide “next-generation” services to GCI and ACSG customers, with both companies continuing to market and sell services independently.

LTE roaming was a topic of discussion at the recent Competitive Carriers Association event, where a number of carriers mentioned concerns regarding a lack of viable LTE roaming agreements with the country’s nationwide operators. Sprint earlier this month announced the signing of LTE roaming agreements with 15 rural operators to go along with the dozen agreements signed earlier this year.

—Verizon Wireless last week expanded the availability of its XLTE service, which taps into its 1.7/2.1 GHz spectrum holdings to add capacity support to its LTE network.

The recent expansion included 22 new markets that now have approximately double the spectrum to support LTE, building on the initial 20 megahertz of spectrum in the 700 MHz band the carrier used to launch LTE services. Verizon Wireless claims its XLTE offering is now available across more than 400 markets, or more than 80% of its total LTE footprint.

Verizon Wireless has been aggressive in enhancing its 1.7/2.1 GHz spectrum holdings, having initially won a handful of licenses during the Federal Communications Commission’s 2006 spectrum auction, before acquiring a substantial number of licenses through various transactions. Verizon Wireless has also said it was very focused on the FCC’s upcoming AWS-3 spectrum auction that includes new spectrum in the 1.7/2.1 GHz bands set aside for commercial services.

The additional spectrum support is also being used to bolster Verizon Wireless’ recently launched voice over LTE service, which the carrier rolled out last week ahead of commercial availability of the VoLTE-ready Apple iPhone 6 smartphone. The move to VoLTE is expected to allow wireless carriers to transmit voice traffic more efficiently and eventually shutter legacy 2G and 3G networks that are currently burdened with carrying all voice traffic and a good portion of data traffic.

—Coming off a record-breaking weekend launch, Apple’s iPhone 6 and 6 Plus devices are set to gain additional carrier support.

Wisconsin-based Cellcom, Oklahoma-based Pioneer Cellular, Kansas-based Nex-Tech Wireless and Sprint’s prepaid brand Boost Mobile all said they plan to offer the devices to customers beginning Sept. 26, except for Boost, which has yet to announce a launch date. The new carrier announcements go along with previously announced launches by Ntelos and Bluegrass Cellular. Larger operators, including Verizon Wireless, AT&T Mobility, Sprint, T-Mobile US and U.S. Cellular, began offering the devices on Sept. 19.

Cellcom said it will offer the devices at a subsidized price beginning at $199 with a two-year contract, or on a device financing plan at $27.05 per month over 24 months for the iPhone 6 16 GB model. Pioneer said the iPhone models would be available through its device financing plans that begin at $27.04 per month for 24 months for the iPhone 6 16 GB model. Both of the device financing options come to around $650, or basically in line with no-contract pricing from other operators.

Kentucky-based Bluegrass this week added more color to its iPhone pricing plans, stating it would sell the devices beginning at $199 with a two-year contract, or for $30 per month for 20 months through its financing option.

Ntelos and Nex-Tech have strayed from the standard pricing model for the latest iPhone devices, announcing a $50 lower price point on the models they will be offering up to consumers with a two-year contract. Ntelos is also offering a device financing model at price points similar to its fellow rural operators.

Boost Mobile has yet to announce launch dates or prices for the latest iPhone devices.

A number of rural operators had previously offered past iPhone models at $50 discounts compared to price points of the nationwide operators.

Additional carrier news can be found on the RCR Wireless News “Carriers” page.

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