Sprint in Talks to Merge with T-Mobile

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Sprint is again in talks with T-Mobile USA parent Deutsche Telekom to explore ways to combine the number 3 and 4 cellular carriers.

Sprint and T-Mobile are falling farther behind market leaders Verizon and AT&T, says the Wall Street Journal. Sprint can’t compete with the larger carriers to win big deals for products like the iPhone. And T-Mobile is lagging in building next generation networks and may soon run out of spectrum.

sprint, T-Mobile in talks to combine: WSJBut a deal isn’t expected any time soon as two disagree on T-Mobile’s market value, and the talks are considered preliminary, said the WSJ.

A deal would combine Sprint’s 49.9 million subscribers with T-Mobile’s 33.7 million customers. AT&T and Verizon Wireless have 95.5 million and 94.1 million subscribers, respectively.

Still, the two companies would have to work with 4 different network technologies if they combined. And the deal would likely attract attention by federal regulators.

Source: The Wall Street Journal

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