T-Mobile To Buy Sprint?

Sep 14 2009, 10:54am CDT | by Robert Evans

We earlier reported that T-Mobile is getting ready to make an offer to Sprint. Deutsche Telecom, parent to T-Mo US and UK, is once again considering making Sprint an offer. They're in talks right now with Deutsche Bank to put together an offering.

This isn't the first rumor of this kind that we've heard, but it does have an air of believability around it. The economy is bad enough, and Sprint's economic woes are extensive enough, that this purchase could actually go through.

Despite T-Mo's recent troubles, they still have quite a bit of girth on underdog Sprint. DT has an estimated value of about £36.3bn, while Sprint is currently valued at only £6.3bn. Their recent major handset launches (including the Palm Pre and HTC Hero) have done a lot to begin salvaging the carrier's name, but they are still having trouble holding on to customers.

This news comes on the heels of T-Mobile UK's announced merger with Orange. While we've heard rumors of T-Mo acquiring Sprint before, the fact that their UK branch is in the midst of a merger right now makes it seem more likely. It is a difficult time for carriers right now, and merging to gain a larger share of two major markets sounds like a solid strategy for Deutsche Telecom.

The question is, will Sprint agree? If T-Mo makes the offer (which seems likely) I am tentatively speculating that, yes, they will. It makes sense for both companies, and it could be the only way either will be able to really compete with AT&T or Verizon.

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Robert Evans
The excitement about new smartphones, tablets and anything mobile drive Robert to unearth the latest rumors and developments in this fast moving space. He adopted 4G as soon as it become available and knows where the mobile market is going.
Robert can be contacted directly at robert@i4u.com.