Over the weekend, the well known German magazine Der Spiegel published an article that discussed the possibility of Germany’s Deutsche Telekom, parent of T-Mobile USA, acquiring Sprint Nextel.
The magazine noted that Sprint Nextel’s share price has slumped significantly recently and that the strong euro would make it a low price transaction, one that would help the European company to compete with the leading American telecom firms.
This is big news in the mobile world, because a move like this would mean that T-Mobile would basically be put at the top of the market and take control of the number one spot in the US market.
There are a few issues at hand here however, and so the acquisition will certainly not be a simple open and close case. The merger may be unlikely for a number of reasons, one of the most major involving the base incompatibility between T-Mobile USA and Sprint Nextel.
T-Mobile is a GSM based carrier while Sprint Nextel still has to merge the disparate networks from the individual Sprint and Nextel units which run on CDMA and iDEN, respectively.
We for one will definitely be keeping our eyes on this story and let you know when there are any further developments on this story.
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