Tuesday, May 6, 2008
Sprint/Nextel Ready To Break Up? T-Mobile To Buy Sprint?
Posted by Ed Hansberry in "Pocket PC News" @ 06:00 AM
"Reports wafting over the Atlantic Ocean suggest that Deutsche Telekom -- parent company of T-Mobile USA -- is considering Sprint Nextel as a take-over target. And why not? Sprint's share price is below $10, and the euro continues to dominate the dollar. Sprint's spectrum alone is worth it. That would make T-Mobile + Sprint the largest wireless operator in the United States. But could it work without falling to pieces?"
There is further speculation that Sprint is ready to ditch Nextel, the "push to talk" provider it purchased in 2005, which could make Sprint an even sweeter target for a T-Mobile buyout as Nextel's value and subscriber base has been on a steady decline since 2005. The big question is, if it happens, is how do you meld the two networks based on different technologies, T-Mobile being GSM and Sprint being CDMA. In order for the deal to make long term sense, there would have to be one surviving network.