T-Mobile to Snatch Up Sprint?
Gosh, seems like Sprint buyout rumors have been around forever. The latest? T-Mobile to swallow up the hemorrhaging cellphone provider, Sprint.
Sprint Nextel may be a takeover target, according to one of the nation’s largest investment banking firms.
Deutsche Telekom, owner of T-Mobile and the world’s sixth largest phone company, may consider acquiring Overland Park-based Sprint to block a price war in the mobile phone industry, analysts for Merrill Lynch said today.
The Wall Street firm said Sprint’s operational problems and shaky position in the U.S. wireless industry may force the company to cut prices even further to attract customers.
“In such a price war scenario, we think T-Mobile would face the most pressure, and Deutshe Telecom would see the increased urgency to drive market repair,” according to the firm’s report.
T-Mobile generally is considered to be the low-cost alternative among the top five U.S. mobile phone companies. Last week, Sprint introduced an unlimited voice and data wireless plan that undercut other U.S. companies.
A Deutsche acquisition is possible now because of Sprint’s share price and the weakness of the U.S. dollar, Lynch said.
Now, I really don’t understand WHY T-Mobile would want to buy Sprint. Yes, it would give them a HUGE shot in the arm with subscribers but T-Mobile would them be operating 3 separate networks - iDen, CDMA, and GSM. Not such a wise business move if you ask me.
---
Related Articles at UNEASYsilence:
