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T-Mobile may acquire Sprint-Nextel

Posted at 20 September 2009 01:18 CEST by Randomus

There have been rumors circulating that T-Mobile parent company Deutsche Telekom is interested in purchasing the struggling Sprint-Nextel service.

T-Mobile, currently the No. 4 wireless provider behind AT&T and Verizon Wireless, has had an extremely difficult time competing with the two top providers.  It’s possible company executives think a move to purchase Sprint will put it directly in line with AT&T VZW.

The report, recently published in the Telegraph, indicates a growing need for Deutsche Telekom to create partnerships and order buyouts of other companies.  For example, the UK T-Mobile business is going to merge with France Telecom’s Orange wireless provider.

tmobile-logo2

A recent editorial lists six reasons — ranging from technology differences and T-Mobile mistakenly absorbing Sprint’s problems — as justifications on why the acquisition doesn’t make sense.

Sprint remains silent about the deal, with an e-mail sent to T-Mobile unanswered.

Assuming U.S. federal regulators allow the deal to occur, the ability to put added pressure on VZW would make it worth the costly acquisition for T-Mobile.  Although I’d be very interested to see how Deutsche Telekom handles the fact T-Mobile uses GSM and Sprint uses CDMA — one of the six reasons T-Mobile shouldn’t purchase Sprint.

Furthermore, T-Mobile has strongly supported the open source Google Android platform, with Sprint promoting at least one Android handset alongside the Palm Pre mobile phone.  It’s likely Palm would support having its Pre and Pixi smartphone available to even more subscribers, but contractual issues would need to be closely investigated.

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There are 2 comments

Explorerfl
New on Forum
Posted on: 21 Sep 09 20:08
    The problem with Sprint ( and Verizon for that matter) is that they don't support GSM technology while the rest of the world does. If the US would dictate that GSM was a requirement for using our public airwaves, competition would really heat up because users(remember them?) would be able to move to the vendor of their choice without having to switch phones. I use my AT&T GSM phone in Canada on the Rogers network. My T-Mobil phone also works there. If I didn't have a company subsidy, I would be all T-Mobil as they give me the best deal for my needs. I buy 1000 minutes good for one year and there is none of this $1/day access fee as charged by AT&T or Verizon.
    paulw2
    MyCE Senior Member
    Posted on: 22 Sep 09 09:03
      Actually not all the rest of the worlds networks support GSM. Take Telecom New Zealand's new XT network is a 850 WCDMA network.3G only. A 850 GSM fone will not work on it but a XT supplied fone will work on a 850 GSM network.. Multiband fones. They also have a normal CDMA n network that is due to be closed in 2012. Thought it would be interesting if the above merger took place to see what happens with the two different technologies.

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