Reports have been swirling since last year that SoftBank-owned Sprint was eyeing to acquire T-Mobile USA from Deutsche Telekom. As recent as last month, however, Sprint CEO Dan Hesse admitted that the U.S. government wasn’t exactly keen on the deal, likely due to possible monopolization concerns. Those same fears were expressed before the government ultimately nixed AT&T’s plan to acquire T-Mobile. Today, a new story suggests the deal won’t happen anytime soon.
According to Bloomberg, Deutsche Telekom’s CEO Timotheus Hoettges recently made comments to company directors suggesting that there are currently too many regulatory roadblocks for a deal to move forward soon, at least with SoftBank. It’s possible that T-Mobile will work with another company on a sale, like Dish, which has sought additional spectrum in the United States. For now, however, it appears T-Mobile and Sprint won’t become a single entity anytime soon.
Bloomberg said that Hoettges may instead try to find new ways to milk cash out of pre-paid subscribers by moving them over to postpaid plans -something T-Mobile USA CEO John Legere has been particularly good at – and will ask the U.S. government for new opportunities to buy additional wireless spectrum. We may hear more on this front tomorrow afternoon after Deutsche Telekom reports its quarterly earnings.