Sprint, T-Mobile Deal May Face Regulatory Hurdles

T-Mobile has been shaking up the wireless industry with its so-called EUuncarrierEU moves. Verizon Wireless, AT&T and Sprint have all changed up how they package data and voice minutes since T-Mobile started pushing out innovative pricing schemes.

Now, it seems Softbank, which recently acquired Sprint, is ready to make another bold move in the U.S. wireless industry and T-Mobile is smack dab in the center of the mix. Sprint is rumored to be considering grabbing the U.S.EUs fourth-largest carrier, which would give the combined company 98 million subscribers -- just 10 million fewer than AT&T and 3 million fewer than Verizon.

So far, it seems Softbank shareholders arenEUt thrilled with the notion. The companyEUs shares dropped 3.2 percent at the close of trade in Tokyo. Maybe with the $21.6 billion the company already spent acquiring Sprint -- along with the $16 billion it plans to spend on the company over the next two years for faster wireless service -- has been enough for their risk tolerance.

Regulator Challenges

We turned to Jeff Kagan, an independent telecom analyst, to get his take on the rumors. He told us if Sprint does acquire T-Mobile it would transform the company into a larger and stronger number three competitor to both AT&T and Verizon Wireless virtually overnight. Whether the U.S. government would allow it is the question.

EUI think Softbank and Sprint would love to sink their teeth into T-Mobile,EU Kagan said. EUIt would transform them into a much larger and much stronger third place competitor, especially since they are both reinventing themselves as we speak.EU

But history doesnEUt bode well for Sprint in a possible acquisition. AT&T tried and failed to acquire T-Mobile a couple of years ago. The U.S. government would not allow the deal to go through because it wanted to keep four competitors in the space....

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Sprint, T-Mobile Deal May Face Regulatory Hurdles

T-Mobile has been shaking up the wireless industry with its so-called EUuncarrierEU moves. Verizon Wireless, AT&T and Sprint have all changed up how they package data and voice minutes since T-Mobile started pushing out innovative pricing schemes.

Now, it seems Softbank, which recently acquired Sprint, is ready to make another bold move in the U.S. wireless industry and T-Mobile is smack dab in the center of the mix. Sprint is rumored to be considering grabbing the U.S.EUs fourth-largest carrier, which would give the combined company 98 million subscribers -- just 10 million fewer than AT&T and 3 million fewer than Verizon.

So far, it seems Softbank shareholders arenEUt thrilled with the notion. The companyEUs shares dropped 3.2 percent at the close of trade in Tokyo. Maybe with the $21.6 billion the company already spent acquiring Sprint -- along with the $16 billion it plans to spend on the company over the next two years for faster wireless service -- has been enough for their risk tolerance.

Regulator Challenges

We turned to Jeff Kagan, an independent telecom analyst, to get his take on the rumors. He told us if Sprint does acquire T-Mobile it would transform the company into a larger and stronger number three competitor to both AT&T and Verizon Wireless virtually overnight. Whether the U.S. government would allow it is the question.

EUI think Softbank and Sprint would love to sink their teeth into T-Mobile,EU Kagan said. EUIt would transform them into a much larger and much stronger third place competitor, especially since they are both reinventing themselves as we speak.EU

But history doesnEUt bode well for Sprint in a possible acquisition. AT&T tried and failed to acquire T-Mobile a couple of years ago. The U.S. government would not allow the deal to go through because it wanted to keep four competitors in the space....

Comments are closed.