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Sprint and T-Mobile Possibly Considering Merger

by Emily Price | March 8, 2011March 8, 2011 1:24 pm PST

Sprint and T-Mobile USA are reportedly discussing the possibility of a merger. In the merger Deutsche Telekon AG would sell T-Mobile USA to the Sprint Nextel Corp, and in exchange would own a portion of the combined entity.

According to Businessweek, the talks have hit a stand still because the two companies are unable to agree on the value of T-Mobile. The carrier had a drop in profits in the fourth quarter of 2010, and has seen a drop in customers that is likely to affect profits in the future as well.

and T-Mobile are currently the third and fourth largest wireless providers in the US, trailing behind Verizon and AT&T. Instead of merging with Sprint,  T-Mobile is also reportedly considering buying wireless spectrum from Clearwire, a move that would better its position in the mobile marketplace.

What do you think about the potential of a T-Mobile/Sprint merger?

[via Businessweek]

Emily Price

Emily has been obsessed with computers since the early 80s when she discovered she could play Ghostbusters on her father's Commodore 64. She...