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Sprint considering merger with T-Mobile USA?

Sprint CEO Dan Hesse, talking to the Financial Times, has said today that the carrier is now actively considering deploying WiMAX and LTE for their 4G networks.

Currently, the company only offers 4G through WiMAX.



That decision is leading many to speculate that a long rumored merger between Sprint and T-Mobile USA is a possibility, given that both would use LTE for their 4G needs.

The merger makes no sense now, as T-Mobile uses GSM/UMTS for 3G while Sprint uses CDMA. Deutsche Telekom, the parent of T-Mobile has entertained offers to sell its American unit.

T-Mobile is the fourth biggest carrier in the U.S., with 34 million subscribers, while Sprint is third at 48 million. Both trail leaders Verizon and AT&T by a large margin.

When asked about a merger, Hesse said there was "logic" behind a move like that: "I don't see a need to scale larger, but if there's an acquisition that makes sense for us, I do want to have a balance sheet that would give me the flexibility of making good acquisitions when we see them."

Written by: Andre Yoskowitz @ 13 Jul 2010 20:49

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• 10 comments

• Mysttic

  Oh god... lets take a somewhat descent carrier and merge with a shitty ass one... Whats that make? Well more money immediate term, but to what end... Please don't... Not that it matters to me as I not in the US, but still I'll feel for the consumers if they do merge.

  13.7.2010 21:01 #1

• Hyasuma

  Well, T mobile is crappy, and I switched from AT&T to Sprint cuz of the cost and Sprint just has a better deal. I like GSM better than CDMA, this will be nice if Sprint merge with T mobile, so it could be GSM in the future. ( i just like the SIM card idea )but then again, I haven't have a need for it cuz I haven't gone out of the country. If they do merge, thats great for them, but I do wish that they merge with someone better. * I had T mobile before as well, and it sucks
  

  13.7.2010 22:12 #2

• DVDBack23

  Originally posted by Hyasuma: Well, T mobile is crappy, and I switched from AT&T to Sprint cuz of the cost and Sprint just has a better deal. I like GSM better than CDMA, this will be nice if Sprint merge with T mobile, so it could be GSM in the future. ( i just like the SIM card idea )but then again, I haven't have a need for it cuz I haven't gone out of the country. If they do merge, thats great for them, but I do wish that they merge with someone better. * I had T mobile before as well, and it sucks Where do you live?
  

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  13.7.2010 23:15 #3

• Hyasuma

  Originally posted by DVDBack23: Originally posted by Hyasuma: Well, T mobile is crappy, and I switched from AT&T to Sprint cuz of the cost and Sprint just has a better deal. I like GSM better than CDMA, this will be nice if Sprint merge with T mobile, so it could be GSM in the future. ( i just like the SIM card idea )but then again, I haven't have a need for it cuz I haven't gone out of the country. If they do merge, thats great for them, but I do wish that they merge with someone better. * I had T mobile before as well, and it sucks Where do you live? I live in Michigan, but I was born in Taiwan
  

  14.7.2010 00:36 #4

• asilay328

  I have T-Mobile and have never had any problems with service or network speed. As far as a merger, I like the idea in that it appears these two companies are the only ones truly upgrading networks (in the sense of HSPA+ and 4G towers). As soon as Iphone 4 expands to the other services in January, AT&T will probably take a hit and the only true super power left will be Verizon... which I feel is just plain over priced... Maybe this move is to establish some ground once that happens
  

  14.7.2010 10:19 #5

• pirkster

  This would be absolutely horrible.
  
  Sprint is the worst of them all, with the most outdated network.
  
  I've had T-Mobile for years, and it's better than any other carrier in my area for signal and value.
  
  Sprint is going to have to do something to bring their service out of the stone ages. I suppose merging with T-Mobile would be a logical solution since they are so far behind in technology.

  14.7.2010 16:37 #6

• lawndog

  @ pirkster, I'm rather confused by your comment. Sprint is the only provider with 4G so I wonder how that makes them in the stone ages, being that no other provider has yet to bring 4G to the table.
  

  14.7.2010 22:13 #7

• ee2skater

  Hey pirkster, quit living in the stone age because quite honestly, Sprint HAS stepped their game up quite nicely in the recent months. Cheap plans AND I roam on Verizon's network for free, so I have the best network :)

  16.7.2010 19:44 #8

• raceman94

  I have T-Mobile and I'm happy with them. And as for Sprint, I was under the impression that they've really turned their network around for the better.
  
  The part that doesn't make sense is why a CDMA carrier wants to merge with a GSM carrier. That just seems like a logistic nightmare.

  21.7.2010 02:05 #9

• pocketfull1

  Hey pirkster,
  
  Do you own a cellphone?
  
  Im totally confused about your comment even though Ive had some up and downs with sprint they have the best and cheapest plans not only that theyre building 4g towers in certain areas . I wouldnt dare compare tmobile with sprint ever edited by ddp

  28.7.2010 15:37 #10