Feeds

Sprint eyes T-Mobile acquisition

American wireless still in upheaval

Using blade systems to cut costs and sharpen efficiencies

Sprint is reportedly in talks with Deutsche Telekom about buying up T-Mobile USA, creating a single network part-owned by Deutsche but able to compete with AT&T and Verizon.

The talks, which Bloomberg reckons have been going on over the last few weeks, could result in T-Mobile becoming part of Sprint with Deutsche Telekom owning as much as half of the resulting company, though Bloomberg also suggests that T-Mobile buying up a chunk of Clearwire spectrum is an alternative plan.

T-Mobile certainly needs to do something, it's been bleeding customers for the last few years and hasn't the radio spectrum, or the funds, to build a 4G network to compete with those being offered by AT&T and Verizon. Deutsche Telekom did a similar deal in the UK, ending up with half ownership of Everything Everywhere, which was created from T-Mobile UK and Orange (the latter being France Telecom's UK operation).

Given its inability to build a 4G network, there has been much speculation that T-Mobile USA would be a flagship customer for LightSquared. LightSquared plans to build a national LTE (4G) network in radio spectrum usually reserved for satellite communications, and then wholesale that network to operators – with T-Mobile being the most obvious potential customer. But in fact it has been Sprint who has been talking to LightSquared about sharing cell sites, and even discussing the possibility of using LightSquared's network in preference to the Clearwire one in which Sprint has ownership.

That's probably just Sprint trying to drive down the rate it pays Clearwire for network access, beating it with a LightSquared-shaped stick with no intention of actually switching networks. Making the switch would mean migrating users to new handsets and all sorts of complexity, and with Sprint being the majority owner of Clearwire, it has no interest in beating the network provider too hard.

Merging with T-Mobile, on the other hand, would achieve economies of scale and remove the requirement for an additional 4G network (which would be bad news for LightSquared). Bloomberg reports that T-Mobile's valuation is the sticking point, which shouldn't be any surprise, but a deal would seem to make sense if an agreement can be reached. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Microsoft unsheathes cheap Android-killer: Behold, the Lumia 530
Say it with us: I'm King of the Landfill-ill-ill-ill
All those new '5G standards'? Here's the science they rely on
Radio professor tells us how wireless will get faster in the real world
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.