Sprint reportedly pushing for T-Mobile merger to better compete with AT&T and Verizon

By Alexandra Burlacu | Dec 14, 2013 08:33 AM EST


The U.S. has four major carriers, and two of them are reportedly discussing a merger: Sprint and T-Mobile.

Sprint is the nation's third largest carrier, while T-Mobile comes in fourth. According to a new report, Sprint is considering a potential bid for T-Mobile, which would lead to a merger of the two companies.

Follow us

Citing "people familiar with the matter," The Wall Street Journal claims that Sprint is currently "studying regulatory concerns" and it could be ready to place a bid as soon as the first half of next year.

Sprint executives have reportedly been considering a merger with T-Mobile for several years, as the resulting company would be able to better compete against heavyweights AT&T and Verizon Wireless, the nation's two largest carriers. After a potential AT&T/T-Mobile merger failed to materialize, according to the WSJ, executives from both companies have stated that a merger should be allowed. Sprint, meanwhile, had been interested in a deal with T-Mobile even before the whole AT&T/T-Mobile merger fell through.

According to various previous reports, Sprint made an attempted bit for T-Mobile in 2010. AT&T then placed a $39 billion bid on T-Mobile in early 2011, prompting Sprint to file a federal lawsuit against both AT&T and T-Mobile to try and stop the deal from materializing. The Department of Justice (DOJ) later forced AT&T to pull out of the merger by filing an antitrust lawsuit against the deal.

At the time, regulators argued that such a merger between AT&T and T-Mobile would negatively affect competition across the U.S. Some might see a Sprint/T-Mobile merger as raising the same issue, with the same negative impact on competition for such services.

Sprint and T-Mobile executives reportedly argued, however, that only through such a merger the two companies would have a real chance to compete against the powerful AT&T and Verizon. AT&T's subscriber base is nearly 110 million, while Verizon has almost 120 million subscribers. Together, Sprint and T-Mobile have a combined user base of 53 million users. This means that even joining forces, Sprint and T-Mobile would still have about half of the subscriber base of AT&T or Verizon.

The purported merger between Sprint and T-Mobile is still in discussion and nothing is certain for now, which means that it may or may not materialize. Such a deal will definitely be tough to achieve, but it would significantly boost their relevance in competing with AT&T and Verizon. The stakes are high, but Sprint seems determined to see this through. Will we see a Sprint Mobile next year? A T-Sprint? Only time will tell.



Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

sprint, T-Mobile, at&t, Verizon, Sprint T-Mobile Merger

Join Our Conversation

Most Popular

what's app

© 2016 IQADNET LLC All rights reserved.mobilenapps
Real Time Analytics