Sprint may consider purchasing T-Mobile in early 2014

Sprint may consider purchasing T-Mobile in early 2014
There have been minor rumblings here and there in the past that have brought up the possibility of a merger between Sprint and T-Mobile, but suddenly there is a real report that wheels may be in motion. Or, at least someone over at Sprint is considering putting those wheels in motion, and Sprint may be considering placing a bid to purchase T-Mobile in early 2014.

The report comes from The Wall Street Journal, which is saying that Sprint is looking into the potential regulatory issues, and may end up trying to work a deal to acquire some stake in T-Mobile. It is unclear if it would be controlling interest or not, but a potential deal could be worth upwards of $20 billion, depending on how big a chunk of T-Mobile would be purchased by Sprint. 

Of course, there would undoubtedly be quite a bit of regulatory investigations and concern surrounding a potential deal like this. If Sprint were to purchase T-Mobile fully, it would create a new wireless carrier that would rival AT&T and Verizon, and there would undoubtedly be those who would worry that without more smaller "major" carriers like separate Sprint and T-Mobile, there wouldn't be as much market pressure to keep prices a bit lower. This is a main reason why the government denied the potential purchase of T-Mobile by AT&T. 

And, there is also the surprising success of T-Mobile's Uncarrier plans to take into account. T-Mobile has been able to make enough noise that other carriers have adopted similar "upgrade early" plans (though none are really good for the consumer), and AT&T has begun offering no-contract Mobile Share options and more. It would also be a concern that T-Mobile and MetroPCS just merged, and SoftBank recently purchased 78% of Sprint. That's a lot of movement in a short time.

Beyond that, the physical makeup of each network wouldn't mesh well at all. Sprint is CDMA-based behind its LTE network, while T-Mobile is GSM, and merging those networks would be fraught with difficulty. 

Still, Sprint wouldn't be making a move until early next year, so Sprint has at least a couple months to sort out the details. 

source: WSJ

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59 Comments

59. gd761

Posts: 217; Member since: Sep 18, 2012

Yes, but the majority of Phones Worldwide are GSM and they get the First Updates Long before Anyone else.

57. gd761

Posts: 217; Member since: Sep 18, 2012

Sprint usually has to wait and pray for Updates to the Phones because of CDMA and other reasons. If Sprint Buys T-Mobile and phases out CDMA Phones and Reallocates the CDMA Spectrum towards GSM, then there should be No Real Reason as to Why Sprint can't get Regular Updates just like AT&T, and Verizon do for their Phones. This would be another reason why the Sale of T-Mobile Should go through. What's Your Opinion on This piece of Info?

58. andynaija

Posts: 1268; Member since: Sep 08, 2012

But Verizon is CDMA too so...

54. JewBakaUCFG

Posts: 176; Member since: Sep 25, 2012

Proposal: Hesse and Legere (sp?) fight. Five rounds in a UFC ring. Winner takes control of the other network.

53. boomsauce55

Posts: 9; Member since: Nov 06, 2013

Everyone and their mother had talked about this potential "merger" for years now. Wouldn't pay this any mind...

49. Zero0

Posts: 592; Member since: Jul 05, 2012

Here's how I want this thing to go down: -Sprint offers T-Mobile USA a buyout -T-Mobile USA takes the offer -T-Mobile USA and Sprint continue to innovate while they are waiting for the DOJ -The DOJ strikes down the deal, and T-Mobile walks away with a little bit of extra spectrum Basically, the AT&T deal all over again, except the buyer doesn't sit on their hands in the meantime. Realistic? I think so.

47. xtroid2k

Posts: 601; Member since: Jan 11, 2010

Noooooooooooooooo!!!!!!!

46. gd761

Posts: 217; Member since: Sep 18, 2012

Sprint and Nextel were Not compatible, but Sprint was able to use their Spectrum. Sprint Will be shutting off All 2G, and in the Near future, WiMax. Then Reallocate that Spectrum as well. If Sprint buys T-Mobile, then Sprint can Phaseout CDMA and Reallocate that Spectrum as well and use T-Mobile's GSM Network. With the Spectrum from WiMax and CDMA. So, with The Purchase of Spectrum that Sprint had Bought and the Spectrum that it got from Clearwire and the Spectrum from Nextel, Sprint Can have Really Great Bandwidth for both Talk and Data. Just look at All of the Spectrum that Sprint has and ask yourself if Sprint has More Spectrum right now that Both AT&T and Verizon without having purchased T-Mobile yet, What is Sprint going to do with All that Spectrum? The Answer would be most likely to Divide it up for Talk and Data to Vastly Improve the Quality and Speed in All Areas throughout the Entire Spectrum with More Phones that can and Will take Advantage of their Spark Tech.

45. axllebeer

Posts: 272; Member since: Apr 05, 2011

Ya know, it didn't make any sense to me at 1st. Mostly due to the different technologies at play here. CDMA and GSM. But then I remembered that a lot of Sprint phones are indeed world phones. Like mine is. So if this happened from my perspective as a Sprint customer couldn't Sprint just push an update to all their world phones to allow Sprint to utilize T Mobile GSM HSPA+ towers as well as Sprint EV-DO?

42. axllebeer

Posts: 272; Member since: Apr 05, 2011

So, yeah. Apples to oranges. CDMA is completely not compatible with a GSM based system. So I don't get it. Hell, while we're at it why doesn't Sprint bring back Nextel and not be compatible with that technology too! Ahhhhh, (facepalm)

44. PapaSmurf

Posts: 10457; Member since: May 14, 2012

It's possible, but SoftBank would have to dish out money. If the merger goes through, I will cry a little in the inside.

38. andynaija

Posts: 1268; Member since: Sep 08, 2012

NO, NO, AND NO!!! T-Mobile is better off by themselves and it should stay that way Go T-Mo. Right now Sprint needs to prioritize and figure out their situation and improve themselves before trying to even THINK about doing something like this.

32. N-fanboy

Posts: 543; Member since: Jan 12, 2013

If they were to merge, would they (or 'it') be bigger than at&t and Verizon?

33. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Lol no. Verizon is #1 for a reason.

35. a_merryman

Posts: 749; Member since: Dec 14, 2011

They would still be the smallest of the 3 left

29. tatail

Posts: 261; Member since: Jan 08, 2010

Oh, Sprint May Consider.. I see. Well I did this consideration last night but for now I have decided I will not consider considering of buying T-Mobile until I am rich enough..

28. bugsbunny00

Posts: 2267; Member since: Jun 07, 2013

T-mobile you're now(to be) #third largest among the four in u.s.and sprint knows it,just keep on going don't look back.

26. EnigmaticPsychotic

Posts: 70; Member since: Nov 26, 2013

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO​OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO​OOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO​OOOOO

25. Topcat488

Posts: 1425; Member since: Sep 29, 2012

This reminds me of when Porsche tried to buyout Volkswagen... Now Volkswagen owns Porsche!!! Sometimes the "Hunter becomes the Hunted". Sprint sounds like a silly wabbit!

24. Professor

Posts: 223; Member since: Aug 02, 2013

No. No. No. This will be the death for T-mobile. Sprint screws everything and anything they get their hands off. Remember Nextel and when Boost phones used to be the phones to have due to their walkie-talkie feature before Sprint took over and eliminated the only advantage those phones had over the competition. And for what? At least here in NYC if you want to use or get a phone call with a Sprint (or Boost) phone you have to be outside of a building, or glued to a glass window! T-mobile signal may not be as strong as Verizon or AT&T in some places but at least they have signal. Sprint or Boost phones have no signal at all. And that's without counting Sprint super fast 2G internet signal (that's if you can get any signal at all). Oh. Yeah. True. Sprint claims they have 4G LTE signal. I just don't know where? Maybe they have 1 pole with LTE in the lower Manhattan so they can claim they have LTE in NYC.

50. Zero0

Posts: 592; Member since: Jul 05, 2012

The combined carrier would almost immediately be a technological powerhouse, I think. The problem is that we'll have three powerhouse carriers, and only those three. What we need is for Sprint and T-Mobile to independently take market share from AT&T and Verizon. T-Mobile is already doing this to an extent, and Sprint has taken steps to make this possible. Four solid carriers means better service and better prices than three solid carriers.

23. Android4Ever

Posts: 89; Member since: Aug 12, 2013

F sprint! I really hope T-Mobile does not sell out. I'm loving the unlimited EVERYTHING (no throttling) for $70 a month that T-Mobile provides...

22. miguel5510

Posts: 2; Member since: Dec 13, 2013

I strongly disagree no! Tmobile has improve tremendously over the past 9 month tmobile is better off by themselves.Sprint has horrible coverage & hasn't much improve GO TMOBILE KEEP IT UP!!!

31. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

I dont even have Tmobile and i totally agree with your comment. Theres no reason for this "supposed" merger.

19. ajac09

Posts: 1482; Member since: Sep 30, 2009

I doubt tmobiles owners would let sprint even put in an offer after rallying everyone against tmobile/AT&T

48. JEverettnow

Posts: 228; Member since: Mar 11, 2013

What t-mobile has been trying to do is bring more value to their company. Sprint has been thinking of purchasing T-Mobile and Metro PCS for years. Now that T-Mobile is becoming a threat by creating competition they just want to buy them out rather than give up their #3 spot. Deutsch Telecom has been trying to get rid of T-Mobile for a long time as well. I am sure they will entertain offers.

51. Zero0

Posts: 592; Member since: Jul 05, 2012

I don't think T-Mobile is moving in the direction of a sale at this point in time. You don't raise $3 billion for a 700MHz purchase to sell to a company who already has three zillion spectrum licenses.

16. Killertech2099

Posts: 148; Member since: Sep 28, 2013

I rather have at&t and tmobile working together then sprint. Sprint is horrible with plans i like to keep my no contract. If that happens tmobile better be running it they'll call it spit mobile

37. andynaija

Posts: 1268; Member since: Sep 08, 2012

*than

15. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

Shouldn't this be..........oh I dont know............the other way around lol

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