Rumor: Sprint Investigating T-Mobile Purchase

Ryan Whitwam

Pundits have ruminated on this before, but sources have told Bloomberg that a Sprint acquisition of T-Mobile USA is a distinct possibility. T-Mobile USA parent company Deutsche Telekom has reportedly been in talks with Sprint for several months, but the deal may not go through. The valuation of T-Mobile is in dispute in light of a fourth quarter drop in profits.

Sprint and T-Mobile are the third and fourth place mobile carriers in the US respectively. An amalgamation of the two companies may be better able to compete with AT&T and Verizon. Of course, this would result in less choice for US mobile users. Regulatory approval may also be a tough sell unless Deutsche Telekom maintained a large stake in the T-Mobile brand.

Sprint and T-Mobile currently use different wireless technologies. Sprint runs a CDMA/WiMAX network, and T-Mobile is GSM/HSPA. It is unclear if they would maintain separate systems until a future wireless technology is adopted. Do you think a Sprint/T-Mobile deal would be good?

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