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Would T-Mobile clamour for Sprint’s embrace now?
Thursday, 22 December 2011 07:04

After AT&T Inc. dropped Monday pursual of buying T-Mobile USA – a $39 billion takeover deal that’s been fiercely opposed by both the FCC and the Justice department, as well as rival Sprint Nextel Corp., T-Mobile is suddenly in need of a dance partner. Though parent Deutsche Telekom has pocketed a $6 billion breakup package, the telco now either must invest in the States or find another buyer to exit the country. Will Draper, who heads telecoms research at Espirito Santo, opines T-Mobile would now be rooting for a merger with Sprint. The telco’s golden days are behind it now, with it losing customers and severly lacking required spectrum for launching a 4G network. As per sources, before Deutsche Telekom commenced discussions with AT&T in March, it had initially considered selling T-Mobile USA to Sprint in exchange for a stake in the combined company. However, analysts aren’t hopeful that regulators would permit such a deal.

 

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