Deutsche Telekom Considering Sprint Nextel Bid
Would the FCC even approve such a merger?
First and foremost vodaphone already has a he chunk of the US wireless market and you combine that with dutche’s t-mobile and half the wireless customers in the us are owned by foreign entities. If you add Sprint to the list, that makes roughly two thirds of all wireless service in the US owned by foreign entities.
Then of course there are the obvious treats to national security that the merger would pose. Sprint currently has several major contracts with the DOD, DOJ, and Homeland security. The most obvious of which is the nationwide contract with Nextel for wireless services. While having a foreign company provide this service does no...
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2. Consumer groups will raise quite a storm if they try to buy Sprint.
1. Nextel would have to be spun off.
2. T-Mobile USA would be required to sell off those markets in which T-Mobile and Sprint would be the only two carriers. (Which means AT&T could gain markets from T-Mobile).
3. DT may also be required to spin off the companies Sprint recently acquired, such as Virgin Mobile and some Sprint affiliates.
We shall see what the future holds, but if DT does make a bid for Sprint and Sprint shareholders approve (which I think they will, their value in Sprint has been terrible, so they will be happy to unload Sprint).
I don't think we'll know anything till next year, if that.
DT, unlike its TMO subsidiary doesn't have a great reputation in europe. Google problems they have on their home turf in Germany.
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