Merger Between Sprint And T-Mobile Research Paper

Merger Between Sprint And T-Mobile - Research Paper Example because the two carriers have been struggling with the churn which has resulted to the two companies losing grounds to the Verizon Wireless and AT&T carriers. The merger will help in finding a spectrum path in succeeding. For the purposes of Deutsche Telekom to grow T-mobile, the best strategy may be to merge because as it was seen, the strategy worked for Verizon when it took over Alltel. This merger will offer T-mobile an opportunity to offer new services, gain new customers, and also present an opportunity for expansion. The financial position of Sprint reported a Q4 net loss and an operating revenues drop of 14 percent over the past years period. This issue of finance is mostly important to T-mobile parent which is Deutsche Telekom DT and thus a merger with a US carrier is the best strategy. T-mobile suffers from a lack of compelling products and services and thus it is hindered from competing in an effective manner. A merge possibly with an existing carrier is therefore the fast est way that will help T-mobile to penetrate today’s market and grow. Based on the current size, the combination of Sprint and T-mobile will accumulate a close of a total number of 82 million subscribers and annual service revenues of $11 million. There are 11 million more subscribers in Verizon wireless and 5 million more subscribers in AT&T carrier (Butcher, 2011) Due to slightly lower ARPUs, there will be much work that needs to be done on the merger so as to catch up with the carriers that are on the top two because both Sprint and T-mobile are running above twice the churn in monthly estimates of the two leading carriers. This means the carriers are operating at above 3 percent against 1.5 percent. Deutsche Telekom AG was holding talks to Sprint Nextel Corporation to sell its T-mobile USA, a major stake in the entity that is combined as the consideration. A deal might as well not be agreed upon because these negotiations have been on and off for a sometime. The T-mobile USA valuations haven’t been agreed upon by the companies because the company reported a decline in its reported profits. The merger involving Sprint and T-mobile of USA brings together, a third and fourth largest wireless provider in U.S. These companies are behind Verizon Wireless and AT&T Inc. The net worth of T-Mobile of U.S was between $ 15 and $ 20 billion. The sprint net worth was $13.6 billion. The price of Sprint, the acquirer may disappoint Deutsche Telekom because the buyer may pay less reason being customer losses. Basing on the unit’s earnings, the company may expect about $25 billion (Saitto et al, 2011) Considering Verizon wireless has 93 million subscribers, AT&T has 85 million subscribers, a combined sprint and T-mobile will put them behind a third placed carrier which is very strong with about 82 million. This puts them in a very competitive position of becoming the second positioned carrier. T-mobile has a sales price of $39 billion which is three tim es its net worth of $13 billion. This means that it would result to Sprint having more debts of worth billions which will increase its total leverage. Market capitalisation of sprint has ranged between $13 billion to around 16 billion since the merger was announced. Sprint will thus be required to borrow billion of dollars to fund the merger which will double its current leverage of $20 billion of long term debts. By year 2010, sprint had 138 percent debt to equity ratio meaning purchase of T-mobile would

Hamlet-Prince of Denmark by William Shakespeare Essay

Hamlet-Prince of Denmark by William Shakespeare - Essay Example All these reasons reveal the strength in his personality reflected through his fairness, his patience and his beliefs in religious values. The seriousness of the ghost’s revelation urges Hamlet to be somewhat suspicious and strive to verify the foundation of this accusation. Even though Hamlet is strongly affected by the revelation about the murder of his father, he wisely decides not to let his anger dictate his moves. He states: â€Å"The Spirit that I have seen / May be the devil, and the devil hath power / T’ assume a pleasing shape† (Shakespeare 2.2. 1046). His ability to doubt the truth around the ghost’s words and, therefore, give the benefit of doubt to his uncle demonstrates his fairness and much self-control. Instead of acting in anger and haste, he decides to find the evidence of the ghost’s claims by setting up a play representing the crime scene as the ghost told him: â€Å"I’ll have these players / play something like the murde r of my father / Before mine uncle. I’ll observe his looks† (Shakespeare 2.2. 1046). Through this play, Hamlet becomes a detective watching carefully his uncle’s reaction to the performance. ... 1034). Indeed, Polonius recognizes some wisdom in Hamlet’s speech even though his philosophical reflections may seem senile to most. This so called madness makes both the King and Queen worried, which keeps away any suspicion until The Mousetrap provokes a deep anger in the King. Indeed, the play causes Claudius to question Hamlet’s madness and threaten to send him in exile: â€Å"I like him not, nor stands it safe with us / to let his madness range. Therefore prepare you / I your commission will forth with dispatch, / And he to England shall along with you† (Shakespeare 3.3.1060). Even though The Mousetrap allows Hamlet to prove Claudius’ guilt, it also exposes Hamlet to exile, which further delays his revenge plans. Hamlet’s madness contributes to hide his plans of revenge but his so called love affair with Ophelia also plays a key role. This relationship draws much attention in the palace and is held responsible for his strange behavior. Talking to Ophelia, the Queen states: â€Å"And for your part, Ophelia, I do wish / That your good beauties be the happy cause / Of Hamlet’s wildness† (Shakespeare 3.1.1045). This association between the love affair and Hamlet’s madness allows him to keep his secret even though he has not been able to accomplish his revenge. The consciousness of his uncle’s wickedness and his mother’s naivety incite him to take these cautions measures in order to protect himself. However, alert as always, Claudius questions his motives and becomes suspicious. He reflects: â€Å"Love? His affections do not that way tend; / Nor what he spake, though it lacked form a little, / Was not like madness† (Shakespeare 3.1.1048). The denial of both Hamlet’s love and madness reveals Claudius’ nihilistic nature and shows the danger which