WSJ: Sprint looking to acquire T-Mobile USA

By , Dec 13, 2013

Earns Sprint Nextel

The Wall Street Journal is reporting this afternoon that Sprint is working on a potential T-Mobile USA purchase. The carrier is said to be looking into regulatory concerns right now, and a bid in upwards of $20 billion could come in early 2014.

A merger of these two wireless providers would be significant for a few reasons. For one, it would leave just 3 major competing carriers in the US. And two, Sprint and T-Mobile have a combined subscriber base close to that of AT&T and Verizon…

Here is the scoop from the Journal:

“Sprint Corp. S +3.44% is working toward a possible bid for rival T-Mobile US Inc.,TMUS +8.65% people familiar with the matter said, setting the stage for a giant telecom merger that if permitted by regulators would leave the U.S. wireless market dominated by three big companies.

Sprint is studying regulatory concerns and could launch a bid in the first half of next year, the people said. A deal could be worth more than $20 billion, depending on the size of any stake in T-Mobile that Sprint tries to buy.”

The report goes on to say that Sprint hasn’t yet decided whether to move ahead with a bid yet. It would be detrimental for it to do so without first checking with regulators, who have the power to squash the deal and would likely have antitrust concerns.

Currently, T-Mobile is the fourth largest carrier in the US with 45 million subscribers and Sprint is just ahead of it with 54 million. For comparison, Verizon has 120 million and AT&T has 108 million. So you can see how this could alter the landscape.

Both companies are just coming off major acquisition deals themselves. Sprint just sold a 70% stake in its business to SoftBank, and T-Mobile recently completed its buyout of regional carrier MetroPCS, which added over 9 million subscribers.

It’ll be interesting to see how this all plays out. Stay tuned.

  • Share:
  • Follow:
  • AlphaPoppy

    I personally hope this goes through. Sprint has the worst coverage of LTE/3G than any carrier I’ve ever experienced. Hopefully, with T-Mobiles expanded coverage, this will help.

    • Adrayven

      I’m the exact opposite. I do not want this because I’m with T-Mobile, and I see how fast Sprint is moving, and it’s horribly slow. I also enjoy the pricing of T-Mobile. Sprint could conceivably totally kill the pricing T-Mobile has I’d wind up spending a crap load more money.

      Example: for 70 in month I get unlimited data on my phone and 2.5 GB of tethering. On Sprint, to have the tethering I would have to spend a minimum of an extra 30 a-month on top of my $90-100 a month phone bill. And then I’m tied into a contract. Yuck.

    • appl3h4ck3r

      I have 3G in Lebanon, NH, USA

    • Jack Wong

      No wonder they offer unlimited data…

      • Ian Jackson

        Sprint is god awful. Let them be awful away from my T-Mo 30 dollar unlimited plan, which is 100mins, unltd txt, unltd data(LTE/4G to 5GB). That’s what I say.

      • Jack Wong

        I am really thinking to leave at&t because of the locked iPhone, this is just BS… we signed the 2 years contract, why still lock our phone? I would rather pay for the full price for phone with cheaper monthly like Tmobile.

      • Ian Jackson

        It’s worth it, trust me. You can actually save some money when you do it, you can get their more affordable plans I bought my phone unsubsidized with T-Mo and really glad I did. I’m actually helping my mother move to Aio Wireles that run on AT&T, and it looks like they have some pretty compelling plans for the asking price.

      • Jack Wong

        It is not just about $, I need a fast LTE service, and it was only AT&T And Verizon back in 2012, I hope Tmobile can do a good job in 2014.

        By Oct 2014, my contract will be over, then I can say F to at&t!

  • Jerry

    Sprint is horrible in New York. Please no .

    • Antzboogie

      Not in Manhattan Im hitting speeds of 15+Mbps download T Mobile is stepping up trust me.

  • Maxim∑

    if this happens that would be great

  • johnsdoe00

    Sprint just went absolutely crazy out of their minds trying to block AT&T from buying T-Mobile not even a year ago and now this? Hypocrites.

    • AndroidDogHeatandSteelersFan

      But I rather have Sprint and Tmobile than At&t & Tmobile. At&t displays corporate greed like Verizon. Hopefully Softbank can set Sprint straight with lower plans .

      • johnsdoe00

        They’re all the same. The only reason Sprint isn’t as blatant with their greed is that it’s hard to be greedy when you’re broke and desperate. I was so ready for AT&T-Mobile.

    • Ted Forbes

      A strategy to reserve it for themselves and it looks like they might end-up snuggling with T-Mobile.

      • johnsdoe00

        Exactly. I hope they get shot down just like AT&T did though. Leave T-Mobile alone.

  • appl3h4ck3r

    I think this is a good plan. I have sprint and I could use some more towers where I need them. Plus, since Sprint is the ONLY carrier with unlimited data (and no off network roaming charges might I add), T-Mobile is a good choice, as the company needs to expand it’s
    LTE market a little bit more.

    • johnsdoe00

      T-Mobile definitely has unlimited data. I never got that claim that Sprint was the only one.

  • Blip dude

    I really hope this doesn’t go through. As much as T-mobile needs to expand its LTE, it is really the only attractive alternative to AT&T (maybe AIO). Sprint in the past was just, bad!!!! in my experience at least, city or suburb. At least T-mobile works great when in the city.

  • blastingbigairs

    I get strong LTE on both networks in North County San Diego, I could care less honestly.

    • Ted Forbes

      Of cost you want to care. Unless you have no intention of ever leaving that corner of the country, then yeah!

      • blastingbigairs

        Haha you are right, sun, surf, hotties everywhere, why would I leave? But in all seriousness, if it happens it’ll hopefully just mean an even better LTE experience for everyone. Before Sprint turned on LTE out here, the 3G coverage on an iPhone was absolutely atrocious. I was going to leave Sprint when my contract was up, but LTE saved that for me :)

  • Rowan09

    If Sprint does the same thing they did to Nextel no thank you. I have MetroPCS and I like what T-mobile did with them because they are two separate companies even though T-mobile owns Metro. The $70+ tax t-mobile plan is unlimited and it’s $60 including tax on Metro and I get the same LTE speeds and signal.

  • johnsdoe00

    The only people that think this is a good idea are Sprint subscribers. This is a horrible idea for anyone that has T-Mobile. And not to mention they use totally different cellular network technologies.

    • blastingbigairs

      I totally agree, but if the merger happened, I would think Sprint would adapt to a GSM network across the board since GSM is far superior to CDMA. It just makes sense.

  • http://alientwilight-aliennation.blogspot.com/ melissa

    Sprint wants everyone..i read that they are aquiring some of Us celluar’s business to…saw it on usc facebook..ppl are hating Usc. I am looking for a cheap smartphone thats got mostly everything a iphone has but prepaid gsm phone
    ..I keep reading how horrible all the carries are idk even no what to do.I will mostly use the phone for wifi.I wont get service here.I read a article said boostmobile is best of all the carries…anyone help me reply.

  • Antzboogie

    Happy but I hope T-Mobile keeps their current plans.