Feeds

Deutsche Telekom mulls Sprint takeover

Transatlantic alphabet soup

Boost IT visibility and business value

Deutsche Telekom is interested in buying Sprint Nextel, a move that would give it the top spot in the U.S. wireless market.

According to this morning's Wall Street Journal, the German-based telekom has entered "a preliminary stage" of discussions that may or may not lead to a bid for Sprint, America's Number Three cellco. DT already owns the Number Four player, T-Mobile USA, and a successful Sprint bid would see it leapfrog AT&T and Verizon into position Numero Uno.

In February, DT gobbled up the tiny US carrier SunCom Wireless, as it continues to expand business in foreign places. Last year, for the first time ever, over 50 per cent of the company's revenue came from outside Germany.

And the moment is ripe for a Sprint takeover, as the euro continues to gain against the dollar - and Sprint's fortunes continue to tumble. The company's revenues dipped from $41bn in 2006 to $40.1bn last year, with customers leaving in droves.

In January, Sprint axed 4,000 jobs and closed 125 retail stores. Then it delayed the debut of its already beleaguered WiMAX service. And late last month, cable giants Comcast, Cox, and Time Warner pulled the plug on Pivot, a Sprint joint-venture that offered wireless alongside TV, land-line,and internet service.

But sources tell The Journal that DT's Sprint bid could be weeks or even months away - if it comes at all. Should it acquire Sprint, DT would be forced to stomach some serious alphabet soup. T-Mobile's network uses GSM. Sprint's uses CDMA. And Nextel's uses iDEN. ®

Update

Sprint's woes continue. Word has just arrived that Qwest has dropped Sprint in favor of Verizon. In reselling Sprint wireless service, the big name land-line and internet provider accounted for 824,000 of Sprint's 53.8 million subscribers as of the New Year.

Secure remote control for conventional and virtual desktops

More from The Register

next story
UK fuzz want PINCODES on ALL mobile phones
Met Police calls for mandatory passwords on all new mobes
Don't call it throttling: Ericsson 'priority' tech gives users their own slice of spectrum
Actually it's a nifty trick - at least you'll pay for what you get
Three floats Jolla in Hong Kong: Says Sailfish is '3rd option'
Network throws hat into ring with Linux-powered handsets
Fifteen zero days found in hacker router comp romp
Four routers rooted in SOHOpelessly Broken challenge
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
New Sprint CEO says he will lower axe on staff – but prices come first
'Very disruptive' new rates to be revealed next week
US TV stations bowl sueball directly at FCC's spectrum mega-sale
Broadcasters upset about coverage and cost as they shift up and down the dials
Tech city types developing 'Google Glass for the blind' app
An app and service where other people 'see' for you
Canadian ISP Shaw falls over with 'routing' sickness
How sure are you of cloud computing now?
UK mobile coverage is BETTER than EVER, networks tell Ofcom
Regulator swallows this line and parrots it back out at us. What are they playing at?
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.