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Analyst sees Sprint, T-Mobile merging in 2010

updated 05:15 pm EST, Wed December 9, 2009

Sprint T-Mo merger would rival size of ATT

Citi Investment Research sparked a reaction in the market today by predicting that Sprint and T-Mobile will merge before the end of 2010. Company analyst Michael Rollins in a note increased the odds of a deal to 55 percent as Sprint may not consider its job cuts and cellphone business improvements enough to offset widening losses. It could change its mind in the first half of the year if any service changes in the winter don't bear fruit, Rollins explained.

A merger with T-Mobile would instantly put the combined entity back into competition with the two larger carriers, AT&T and Verizon. Sprint and T-Mobile have 48.3 million and 33.4 million cellphone customers respectively, but with 81.7 million combined as of this fall, a new entity would edge out AT&T's current base by 100,000 subscribers.

The two carriers have typically denied rumors of a merger, and T-Mobile is unofficially thought to be uninterested in Sprint for now.

Both providers have lost customers defecting to a larger network for either halo devices like the iPhone or Sprint's once poor customer support, but a merger would face multiple obstacles. Antitrust scrutiny is likely as the company would fuel government concerns about industry re-consolidation. Also, the two would have to resolve the split between their CDMA and GSM networks and eventually scrap one carrier's network and phone choices, most likely the North America-only Sprint network.




by MacNN Staff

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Comments

  1. dliup

    Joined: Dec 1969

    +2

    hahaha

    N00b fail.

    Sprint: CDMA
    T-Mobile: GSM

    Yeah their technology are compatible. Jeez.

  1. byRyan

    Joined: Dec 1969

    +1

    anal-lists

    Analyst sees Head, A$$ merging in 2010

  1. resuna

    Joined: Dec 1969

    +3

    End of CDMA?

    Please, please, please, let Verizon try and keep CDMA alive all by itself... they deserve each other.

  1. FastAMX79

    Joined: Dec 1969

    +1

    LOL!!

    Must be that time of year where these 'anilists' need more hits on their blogs.

    Besides, this analyst failed to mention that Sprint already has CDMA and Nextel iDEN... I doubt Sprint can take on a 3rd (GSM) system..

    (Nextel user 1998-2008 and Sprint user 2008-current)

  1. NPS_CA

    Joined: Dec 1969

    +1

    Geeezzz....

    Analysts are pretty piss poor on accuracy... I would take this with a grain of salt.

  1. starwarrior

    Joined: Dec 1969

    0

    Verizon Down

    iPhone will enter story. With the combined user baseapproaching Verizon's, the new bi service iPhone being prepared for Verizion would fit both carrier networks.

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