T-Mobile could submit a $10.6bn Bid for Sprint

By: t-marco September 12th, 2009

T-Mobile - Sprint would join forces

Deutsche Telekom has called in banking advisers to study a possible multi-billion dollar bid for Sprint Nextel, the third-largest mobile phone operator in the US.

The company’s decision to call in Deutsche Bank comes hot on the heels of the agreed tie-up of its struggling T-Mobile UK business with Orange to create Britain’s biggest mobile phone firm.

Last month, Mr Obermann reiterated his warning about the poor performance of T-Mobile US, which reported a 1.7pc fall in underlying customer revenue in its second quarter.

The US operation is struggling to compete against larger rivals AT&T and Vodafone’s 50pc-owned joint venture Verizon Wireless, which have more advanced 3G networks. T-Mobile US is also losing customers to small operators offering cheap deals.┬á Sources said Deutsche Telekom (DT) could submit a bid for Sprint, which has a market valuation of $10.6bn , within the next few weeks.

Combined, T-Mobile, the fourth-placed operator, and Sprint, the third biggest player, would closely challenge AT&T’s second-place spot with 78.2m customers.

DT has been investing $1bn a year in improving its US network, but will need to spend far more to integrate Sprint, which runs on a different type of network. However, it could be easier to integrate the networks when they are upgraded to fourth generation status.

DT will probably need to call on a cash injection from shareholders, including the German government, which holds a 32pc stake, in order to fund an acquisition of Sprint.

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Comments

13 Responses to “T-Mobile could submit a $10.6bn Bid for Sprint”

  1. Maciek on September 13th, 2009 12:37 am


    YES…. Long live DT… Sprint..go to hell

  2. will on September 13th, 2009 2:08 am


    I love this! lets just make sure all that CDMA crap goes away and GSM is put in place for all the sprint users!

  3. marina on September 13th, 2009 2:15 am


    i hope diz does happen it will improve t-mobiles coverage sooo much

  4. T-Marco on September 13th, 2009 2:21 am


    everybody uses GSM. it so much better than CDMA

  5. Stephen on September 13th, 2009 2:37 am


    oh gawd, i hope not…GSM sucks…sooo insecure, listen to: http://twit.tv/sn213 or read transcript at http://www.grc.com/securitynow.htm (episode 213)

  6. Conrad on September 13th, 2009 4:12 am


    Sprint is the best carrier in the U.S. I've used them for a decade and been very pleased.

  7. @Shogun79 on September 13th, 2009 7:26 am


    God, I hope so! That way, I can have my HTC Hero with 4g connection!

  8. T-Marco on September 13th, 2009 2:42 pm


    I don't think the HTC Hero has 4G, only CDMA and Evdo

  9. CellPhoneSignal on September 14th, 2009 2:15 am


    That is something that I will agree with!

  10. FmObila on September 14th, 2009 2:58 pm


    I think that would be pretty unwise move. T-mobile will have to deal with 3 different technologies: GSM, CDMA and iDEN. It will be impossible to integrate those technologies; look at Sprint struggle with Nextel integration of iDEN into Sprint network. It would be cheaper to give all sprint users new GSM phone and shut down CDMA and iDEN networks.

  11. Chase on September 15th, 2009 3:39 pm


    hell now this is bull ish i like Sprint more then T Mobile

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