Feeds

T-Mobile US exec mulls merger with rival Sprint

Only a larger company can take on Verizon, AT&T, moneyman says

Designing a Defense for Mobile Applications

The chief finance officer of US wireless carrier T-Mobile says further consolidation in the US mobile industry is inevitable and that a merger with Sprint would make a lot of sense.

"It's the ultimate logical combination," T-Mobile CFO Braxton Carter told Reuters at the Goldman Sachs Communacopia conference in New York City on Wednesday, though he wouldn't say whether T-Mobile and Sprint had actually discussed the idea.

Sprint is currently the third largest mobile carrier in the US with around 53 million subscribers, according to figures from FierceWireless. T-Mobile is in fourth place with 44 million subscribers, though it recently saw subscriptions surge after debuting aggressively priced, contract-free plan options and a device upgrade program.

Both companies have recently tried to boost share by acquiring smaller competitors. T-Mobile snapped up MetroPCS in April, while Sprint bought out Clearwire in June.

But both companies are still distant competitors to the "Big Two" US wireless carriers, Verizon and AT&T, each of which claims twice as many subscribers as either Sprint or T-Mobile. Carter went as far as to describe the US mobile market as a "duopoly."

Fusing Sprint and T-Mobile into a third wireless behemoth – one with a subscriber base nearly twice as large as that of either company on its own – would be one way to challenge the Big Two's market dominance, or as Carter put it, "create a more competitive environment."

It's unclear, however, whether US regulators would allow such a merger to go forward. The Federal Communications Commission put the kibosh on a proposed merger between T-Mobile and AT&T in 2011, leading many in the industry to surmise that regulators intend to maintain the status quo of four major mobile operators.

But while Carter acknowledged that the current regulatory environment is "tough," he said T-Mobile rejects the idea that the FCC will never be convinced to allow more wireless carriers to merge.

"We think it's not a question of if but when that there's further consolidation in our industry," he said. ®

HP ProLiant Gen8: Integrated lifecycle automation

More from The Register

next story
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
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
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.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
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.
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.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.