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.”
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