Last year Deutsche Telekom of Germany tried to sell off T-Mobile USA to rival US carrier AT&T, which led to many protests from the likes of Sprint. The move eventually collapsed following various lawsuits and intervention from US authorities. Now a Sprint T-Mobile merger could still be on the cards after the AT&T failure.
Rival carrier Sprint was rumored to be in talks with T-Mobile before AT&T launched their failed attempt to swallow up the carrier. According to Mobilebloom Sprint could be looking to reopen negotiations with T-Mobile’s owners about a possible takeover.
It is believed that Deutsche Telekom is still looking to sell off T-Mobile USA, which is currently the fourth biggest carrier in the country. Sprint is still having difficulty making headway into the American mobile market, which is currently dominated by AT&T and Verizon.
Sprint is currently lying behind these two giants who enjoy seventy percent of the US market. Sprint do now offer their customers the chance to own the elusive iPhone, which some see as a big gamble. Since offering the device in October Sprint enjoyed record sales of the handset, but still only sees seventeen percent of the US market.
If any such merger was to go ahead it would not only increase the carrier’s spectrum range, but also see its market share increase to 25 percent. A takeover by Sprint would not be straight forward though as the company is not exactly cash rich at the moment.
They are currently trying to recover a shortfall of $5 billion in cash and any takeover may prove too expensive. Sprint could also face similar legal challenges as AT&T did with their proposed move, and it also would have the expense of converting T-Mobile’s network that would equally be as expensive to achieve.
Do you think a Sprint takeover of T-Mobile would ever happen?
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