Merger Between Sprint and T-Mobile May be in the Works

This is a discussion on Merger Between Sprint and T-Mobile May be in the Works within the Android News forums, part of the Android.net category; Deutsche Telekom AG, the company that owns T-Mobile, is in talks to sell its T-Mobile USA unit to Sprint Nextel Corp. If the merger goes ...

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Thread: Merger Between Sprint and T-Mobile May be in the Works

  1. #1
    Editor in Chief dgstorm's Avatar
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    Merger Between Sprint and T-Mobile May be in the Works


    Deutsche Telekom AG, the company that owns T-Mobile, is in talks to sell its T-Mobile USA unit to Sprint Nextel Corp. If the merger goes through, Deutsche Telekom still wants to own a major stake in the combined company; approximately 50%. This merger is stalled at the moment because a consensus as to the valuation of T-Mobile could not be found yet. Currently, Sprint is valued at about $13.6 Billion, while T-Mobile is somewhere between $15-20 Billion.

    One other possibility discussed was for T-Mobile to buy spectrum from Clearwire, which is majority owned by Sprint, instead of a merger. Deutsche Telekom CFO Timotheus Hoettges had this to say, ”In general, all options are open in the U.S. — the sale of the whole business or of parts." He also indicated that they were not under any pressure to make it happen soon.

    This would be an interesting development in the cell phone industry if it happens. Combining the number three carrier and the number four carrier would create a more powerful entity with more market leverage to compete better with Verizon and AT&T. However, it still may not be enough to elevate either carrier into a more dominant position.

    I wonder the resulting combined name of Sprint Nextel and T-Mobile would be?

    Source: Bloomberg - Businessweek

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  3. #2
    Super Moderator/RS furbearingmammal's Avatar
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    Considering T-Mo and Sprint mostly serve the same areas, this doesn't sound like it's that great an idea except to lock position number 3 in place. If Sprint wants to expand they need to expand their network by building/leasing new towers.
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    Android Sr Member jon_l85's Avatar
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    Yeah that sounds logical. Its like Verizon buying them.

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    Super Moderator/RS furbearingmammal's Avatar
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    Quote Originally Posted by jon_l85 View Post
    Yeah that sounds logical. Its like Verizon buying them.
    That would make more sense, actually -- Sprint's already running CDMA towers, so Verizon would get a huge bandwidth expansion as well as a DOJ antitrust investigation. :D
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    Android Sr Member jon_l85's Avatar
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    Ill talk to my parents cuz they work for verizon and sprint configuring sites.

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    Super Moderator/RS furbearingmammal's Avatar
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    THAT is pretty cool. Ask them if they've ever sited towers less than five miles apart for the same network and if that's ever caused signal reflection because I'm dealing with that now.
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    Android Sr Member jon_l85's Avatar
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    They said they can be as close to each other as long as they are different frequencies.

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    Super Moderator/RS furbearingmammal's Avatar
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    Signal reflection + frequency-hopping = confused Droid.

    Thanks, Jon.
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    Android Sr Member jon_l85's Avatar
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    No problem

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    Android Sr Member Not_Garrett's Avatar
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    Wow, this would be crazy! I actually switched from Sprint to T-Mobile not too long ago...

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