Deutsche Telekom May Sell T-Mobile USA to Sprint
Mar 8, 2011, 9:10 AM by Eric M. Zeman
According to sources cited by Bloomberg, Deutsche Telekom has discussed the idea of selling T-Mobile USA to Sprint in exchange for a stake in the new entity. Talks have been on-going, and Bloomberg's sources weren't sure if a deal would or wouldn't be reached, but Deutsche Telekom said "all options are open" and it would consider selling all or a part of T-Mobile USA. Sprint and T-Mobile USA, the country's third and fourth largest wireless network operators, respectively, have struggled against larger rivals AT&T and Verizon Wireless. By combining their resources and technologies, they might have a better chance of competing. No mention was made of how the companies would overcome the GSM/CDMA technology disconnect. T-Mobile USA, in particular, has continued to lose customers during its most recent quarters. Deutsche Telekom is said to want a 50% stake in a combined Sprint-T-Mobile business. Deutsche Telekom noted that if things don't work out with Sprint, it may buy or lease spectrum from Clearwire in order to improve its offerings. Sprint declined to comment on Bloomberg's story.
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