Deutsche Telekom to buy Sprint and merge it with T-Mobile USA?
T-Mobile USA may be a struggling carrier, but it’s backed by Europe’s largest telecommunications company, namely Deutsche Telekom.
Deutsche Telekom has recently decided to merge T-Mobile UK with France Telecom’s Orange UK, and it looks like it also wants to make important changes when it comes to T-Mo USA.
According to Telegraph.co.uk, the German-based company may, in the next few weeks, “submit a bid for Sprint”, currently the third largest US mobile carrier.
Like T-Mobile USA, Sprint (which has a market value of about $10.6 billion) isn’t doing too well lately, losing customers to AT&T and Verizon, as well as to smaller carriers.
If Deutsche Telekom will indeed buy Sprint and merge it with T-Mobile USA, the resulted carrier would have about 78 million customers – almost as many as AT&T. Of course, a problem in merging the two carriers is the fact that T-Mobile uses GSM/UMTS frequencies, while Sprint is a CDMA operator. Well, we’ll see soon what happens.