T-Mobile & Sprint – What Again?

March 8th, 2011 by · 2 Comments

The news this morning has Sprint Nextel (NYSE:S, news, filings) in talks with Deutsche Telecom AG (ETR:DTE, news, filings) over a potential merger with T-Mobile USA.  And in other news, the sun rose this morning and is rumored to be likely to set this evening.  You’d think if a deal were to be had, they’d have made a bit more progress on it by now.  On the plus side, such a deal would make a bigger wireless carrier that is more able to compete with AT&T and Verizon in scale.  On the minus side, the two networks are incompatible as it stands, and to say that Sprint has been burned recently by integration troubles is a bit of an understatement.

Where this takes a twist of course is when it comes to WiMAX and Clearwire and LTE and LightSquared.  A deal with between Sprint and T-Mobile USA to head in the direction of HSPA+ for now would certainly change the landscape, pulling Sprint away from Clearwire and T-Mobile USA away from what seems like an eventual partnership of some sort with LightSquared. The rumored talks have Deutsche Telecom swapping TMobile USA for a substantial chunk of the combined entity, which would give it a substantial chunk of a substantial chunk of Clearwire.

More likely than an actual deal, of course, is that these talks will end without a deal, and will be restarted again in, say, May.  Or maybe June.  Or maybe both.

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Categories: Mergers and Acquisitions · Wireless

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2 Comments So Far

  • rix says:

    Driven by new radio technology. Software defined will allow them to go from three networks (GSM, iDen, CDMA) to LTE and save $5bn a year within seven years.

  • carlk says:

    “Calling Rob Powell, calling Rob Powell.” Did you know you were being called out to talk about something, Rob?

    Do it before Thursday, please? 🙂

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