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.”
Result for: deutsche telekom
According to a report in the Sunday Telegraph, Germany group Deutsche Telekom is on the verge of submitting a bid for the third largest mobile phone operator in the United States, Sprint Nextel.
With Sprint Nextel’s market valuation topping 10.6 billion, Deutsche Telekom would surely need to call on a cash injection from shareholders, among whom is the German government itself with a 32 percent stake.
The report cites sources familiar with the matter as saying the company will make a bid for Sprint within the coming weeks.
The news comes after Deutsche Telekom’s T-Mobile business in the UK announced a merger with France Telecom’s Orange UK arm, which would result in the largest provider in the mobile phone market in Britain.
The report states that neither Deutsche Telekom or Sprint Nextel would provide a comment on the story.
Result for: deutsche telekom
It appears that the Apple iPhone isn’t selling as well as hoped in Germany , and in response Deutsche Telekom’s T-Mobile arm will be dropping the price of the media device 99 Euros for a promotional Period of two months.
The promotional period will begin on April 7th and end on June 30th and is a pretty steep discount from the device’s MSRP of 399 Euros. The company does note however that the price drop is only on the 8GB model. There is another catch to the price drop however. “Customers must agree to a monthly calling contract that costs at least 89 euros per month. Those opting for a new “starter” iPhone contract that runs 29 euros per month can purchase the phone for 249 euros during the two month period.”
After the price cut, Germany appears to be the first country where the iPhone price has fallen under the Apple suggested price suggesting lackluster sales.
