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Sprint considering buying T-Mobile, says WSJ

News by Andrew Kameka on Friday December 13, 2013.

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The end of 2013 is near, so it only makes sense that rumors would once again emerge of Sprint attempting to purchase T-Mobile. These rumors have started and stopped for several years now, but nothing has ever materialized. However, the Wall Street Journal reports that Sprint is once again exploring its options with a potential bid to acquire T-Mobile US from its parent company Deutsche Telekom.

According to the Wall Street Journal's sources, Sprint is investigating how willing US government agencies would be to have just three major carriers operating in the country. Concerns about removing competition and choice ultimately lead to the end of AT&T's failed bid for T-Mobile in 2011, but that situation was slightly different. AT&T was at the time the second largest carrier in the US and T-Mobile was the fourth-place carrier seen as a more affordable option.

Sprint was a vocal critic of that transaction, but the carrier would obviously be more optimistic about gaining government approval because a Sprint acquisition of T-Mobile would be a merger of the third and fourth place carriers.The odds of the FCC and Justice Department approving a Sprint acquisition of T-Mobile are more likely because the combined company would still have fewer contract subscribers than AT&T and Verizon.

Sprint has not held formal talks with T-Mobile and the company is merely considering placing a bid if it thinks it can pass the scrutiny of regulators. Don't expect news of any potential bid to happen any time soon. If an acquisition bid is made, it would not be made until the first half of next year.

source: Wall Street Journal

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Andrew Kameka
Andrew is based in Miami, Florida.

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