Sprint Working on Potential T-Mobile US Purchase

[MacRumors]

Sprint is preparing a possible bid for T-Mobile US, reports The Wall Street Journal. If permitted by antitrust regulators, a potential merger between the two companies would result in just three major carriers in the United States.

Depending on the stake that Sprint attempts to buy, the deal could be worth more than $20 billion. While Sprint is still looking into regulatory concerns, a bid could potentially come as early as the first half of 2014.

Sprint hasn't yet decided whether to move ahead with a bid. Going forward despite regulators' concerns would be highly risky. Any pursuit of a bid by Sprint could be aimed at testing antitrust officials' reaction to a deal, and a bad reaction could put an end to the effort.

Currently, T-Mobile US, which operates under the T-Mobile, MetroPCS and GoSmart brands, is the fourth largest carrier in the United States with 45 million customers, while Sprint is the third largest carrier with 54 million customers. Combined, the two companies would be come close to reaching the subscriber numbers of the larger carriers in the U.S., Verizon and AT&T, at 119 million and 108 million customers each, respectively.

Sprint and T-Mobile have each struggled to keep up with competitors like Verizon and AT&T, which have been able to implement much larger LTE networks. A merger between the two companies would likely see significant service improvements for customers, due to a larger network infrastructure and the means to make additional spectrum purchases.

Both Sprint and T-Mobile offer perks unavailable on other networks, such as T-Mobile's "UnCarrier" plans that divorce device costs from plan costs and Sprint's unlimited data plans. Sprint and T-Mobile currently operate using different technologies, as Sprint is a CDMA network while T-Mobile is GSM.

It is unclear whether a merger between Sprint and T-Mobile will be permitted, as AT&T previously tried to purchase T-Mobile US in 2011. The Federal Communications Commission and the Department of Justice both made moves to block the transaction, putting an end to the acquisition. AT&T had planned to pay $39 billion in cash and stock for the company.

According to the report, Deutsche Telekom AG, which owns approximately 67 percent of T-Mobile US, is looking to exit the U.S. market.

Article Link: Sprint Working on Potential T-Mobile US Purchase

 

[johnhw]

No. Just no.

 

[psykick5]

It would be a tougher merger due to different cell bands and technologies, but overall I think it would be a good thing so they can finally knock on the doors of Big Red and AT&T and finally do some competing to bring the overall costs to consumers down.

 

[dan1000]

I'd far prefer it the other way around, with T-Mobile buying Sprint. Size difference? Sure, but T-Mobile is related to Deutsche Telecom, which is plenty big enough.

 

[3282868]

No. We need more competition, not less. AT&T should not have been allowed to purchase the only other GSM carrier in the U.S., thankfully the days of "Ma Bell" taught us a lesson. I certainly hope this lesson sticks.

 

[shadowkhas]

No thank you. I went to T-Mobile to get away from the junk of the other carriers.

 

[ashwin4]

No! Why? I love how tmobile made a comeback this year! Stay away Sprint.

 

[Col Ronson]

what a hilariously terrible idea. Two completely opposite networks trying to integrate, haha what a joke. Sprint just wants Tmobile's far superior LTE network.

 

[bigjnyc]

Wait a minute wasn't the CEO of Sprint one of the most outspoken people trying to ban the AT&T - Tmobile takeover? But yet now he is trying to do the same thing? He even went as far as to say that if the government allowed this it would be an outrage and a disservice to consumers.

 

[kwikdeth]

wow. talk about mismanagement. did they completely forget the nightmare that was the Nextel merger? Sprint was reeling from that boondoggle for years.

if sprint bought tmobile i'd honestly consider going back to ATT.

 

[DBZmusicboy01]

*********
If that happens WE ALL MUST PROTEST THIS RIDICULOUS MESS...I am sick of greedy companies over charging everyone for their terrible network.

 

[WhackyNinja]

What? But...What? WHAT?! No.

 

[brendu]

It would be a tougher merger due to different cell bands and technologies, but overall I think it would be a good thing so they can finally knock on the doors of Big Red and AT&T and finally do some competing to bring the overall costs to consumers down.

I disagree. If this is allowed to happen the merged company will be big enough to compete with the att/vz and more than likely their rates will rise, not the other way. Merging mega companies is BAD for the consumer.

 

[Konrad9]

Nah, it's cool, I didn't want competition anyways. Bring on the monopoly!

However I find it hilarious that everyone here who wants Samsung killed and for Apple to be the only phone/tablet/pc/tv/watch manufacturer now suddenly don't like monopolies. Ignorance is bliss.

 

[mj1108]

No. Just, no.

I'd say they have been talking. From back in September:

http://www.theverge.com/2013/9/25/4...-potential-sprint-merger-the-logical-ultimate

T-Mobile chief financial officer Braxton Carter hinted that a merger between the two might not be that bad of an idea.

Though Carter did not say whether or not discussions between Sprint and T-Mobile have already happened, he referred to a potential merger as "the logical ultimate combination."

 

[Reason077]

Just say NO

The US needs more competition between carriers, not less. This is exactly the sort of thing that antitrust laws were invented to prevent!

 

[undesign]

FCC should block this. Hopefully they do.

 

[Breckenridge]

Although I don't use t-mobile. I think the merger should be blocked.

 

[DMaki650]

UGH I just don't care anymore. I'm tired of people complaining about it and I'm tired of companies trying to buy each other out. As long as I can make calls and or text I just don't care.

 

[gretafour]

I was very happy when the AT$T + T-Mobile merger was blocked. Gave me a little bit of faith in the anti-trust ability of the US government. Since then T-Mo has gone on to shake up the market pretty substantially. Alas, I can somehow see them allowing this to go forward. Would be bad news in a market already severely lacking in healthy competition.

 

[TMay]

Nah, it's cool, I didn't want competition anyways. Bring on the monopoly!

However I find it hilarious that everyone here who wants Samsung killed and for Apple to be the only phone/tablet/pc/tv/watch manufacturer now suddenly don't like monopolies. Ignorance is bliss.

Apple isn't a monopoly.

You might try a monopsony.

 

[topgunn]

I would be interested in a carrier that would allow me to use both GSM and CDMA towers interchangeably on one device.

 

[StuddedLeather]

Ugh. Why do people act like this is such a big surprise?

According to the report, Deutsche Telekom AG, which owns approximately 67 percent of T-Mobile US, is looking to exit the U.S. market.

For years the majority owner wanted out of the US market. YEARS. If this doesn't go through Verizon could try or DT will just drop TMO US all together. It's inevitable. They should've let the AT&T merger to happen. . . .

 

[Delorean2006]

Really? of course sprint would be huge Hippocrates and say ATT would be too big if they got TMobile and of course they would turn around and try to buy tmobile, just another reason for me to hate sprint, i just do not like these rumors one bit

 

[Small White Car]

I have mild concerns about either Sprint or T-Mobile surviving long term without merging.

All of you who are so opposed to having only 3 carriers: Have fun when it goes down to just 2.