Move Over AT&T, Sprint May Be Taking Over T-Mobile

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News Posted: Sat, Dec 14 2013 9:51 AM
Two years ago, AT&T’s bid to acquire T-Mobile fell through (with AT&T’s consolation prize a roaming agreement with Deutsche Telekom), but another one of the four major U.S. mobile carriers is considering a T-Mobile purchase.

This time it’s Sprint that has magenta on the brain, according to the Wall Street Journal’s sources. Such an acquisition would consolidate the third- and fourth-largest U.S. mobile carriers into a single behemoth and would thereby cut the number of majors from four to three.

T-Mobile storefront
(Credit: Bloomberg)

The official bid would come sometime in the first half of 2014 and could be worth as much as $20 billion or more. Of course, there are plenty of regulatory headaches to endure, and the fact that the U.S. Justice Department effectively scuttled the AT&T/T-Mobile merger in 2011 doesn’t bode especially well for Sprint’s chances.

Both Sprint and T-Mobile have seen plenty of high-level moving and shaking this year; Japan’s SoftBank acquired a majority stake in the former, and the latter merged with MetroPCS to boost the companies’ combined subscriber total to 43 million.
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That would move sprint into striking range of Verizon

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scolaner replied on Sun, Dec 15 2013 8:56 AM

Well, as far as I know, even when combined, T-Mobile and Sprint would still be somewhat dwarfed by AT&T and Verizon. But it'd certainly be a step in the right direction for them.

Not so great for consumers, methinks.

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digitaldd replied on Mon, Dec 16 2013 10:26 AM

scolaner:

Well, as far as I know, even when combined, T-Mobile and Sprint would still be somewhat dwarfed by AT&T and Verizon. But it'd certainly be a step in the right direction for them.

Not so great for consumers, methinks.

Probably terrible for customers. Mergers tend to force the monthly rates up. I wonder what the effect would be on their mobile network I have noticed in some areas where one is weak the other is strong that could mean better coverage for the higher prices.

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