Sprint and T-Mobile US in merger talks

20 January 2014 | Sophie Donoghue


SoftBank-owned Sprint and Deutsche Telekom’s T-Mobile US unit are in talks over a possible merger between the two companies.

Sources claim the discussions will address several issues around the potential merger, including how much cash and stock SoftBank will pay to acquire Deutsche Telekom’s 67% stake in T-Mobile US.

There are also questions over how the US’ third-largest player Sprint and fourth-largest player T-Mobile US would integrate in the market.

Combining the two US operators would create a stronger rival for the top two US players, Verizon and AT&T. The merger is intended to give the two smaller operators the scale to make the network investments and spectrum purchases needed to compete.

Sources reported that an agreement could take months to finalise. There are also concerns that the Federal Communications Commission, the US regulator, could block the deal on competition grounds, as it did when AT&T bid for T-Mobile US in 2011.

Reports suggest Sprint has been interested in making the merger since December last year.