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Leaks: Sprint had assumed it would get T-Mobile

updated 09:25 pm EDT, Sun March 20, 2011

Sprint surprised a T-Mobile and ATT deal

Sprint had assumed it would be the one to buy T-Mobile and was taken completely off guard by AT&T's offer, leaks gave away Sunday. The carrier was purportedly unaware of any concurrent deals and had been making all efforts to guarantee the deal. It was "desperate" to land a deal and get a larger power base, TechCrunch was told.

T-Mobile may also have been caught unprepared. USA head Philipp Humm in a letter to employees cast it as 'shocking' and had to reassure staff that the deal was in their best interest.

Most leaks had so far presumed that Sprint had been in intensive negotiations with T-Mobile and that the two had mutual incentives to unite. Although their networks are different, they would have created a carrier large enough to rival AT&T and Verizon. Regulators would have been more willing to approve such a deal since it would be less prone to trigger fears of anti-competitive practices.




by MacNN Staff

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Comments

  1. nowwhatareyoulookingat

    Joined: Dec 1969

    +8

    By in their staff's "best interest", they mean

    it's in the best interest of the top two, possibly three, levels of executives. Everybody else is lumped into a large group under the heading "Disposable".

  1. facebook_Justin

    Via Facebook

    Joined: Mar 2011

    +6

    comment title

    Just what we need, the idiot CDMA carrier converting T-Mobile into a useless CDMA network. Thank God this didn't happen.

  1. malax

    Joined: Dec 1969

    0

    Oh well

    Three strong telecom providers would be better than the current "Verizon, AT&T, and a bunch of small fish."

  1. Salsa

    Joined: Dec 1969

    0

    LTE

    I think Sprint was planning to merge the two companies on LTE or another next gen technology, not CDMA. It wouldn't make much to force everybody to buy a last generation device.

  1. Inkling

    Joined: Dec 1969

    0

    T-Mobile employees

    I wonder if this merger was as great a surprise to T-Mobile's upper management as it is being portrayed. I suspect they were cleverly using Sprint's interest to extract more money and concessions from AT&T. The merger of two GSM companies certainly makes more sense. My unlocked T-Mobile iPhone will move seamlessly on to AT&T's network. It would never work with Sprint's network.

    It's also easy to imagine many T-Mobile employees being unhappy about this merger. T-Mobile's national headquarters is in Bellevue, across Lake Washington from Seattle. I've got friends who work for it, and I have staffed events for T-Mobile. Merging with the Dallas-based AT&T is likely to mean moves for many and layoffs for some. Exchanging a Seattle home for one is Dallas will make some of them rich, but it's also exchanging mild winters and cool summers for blazingly hot summers and winter storms that can send temperatures plunging into the single digits in a few hours. I've lived in and liked both cities, but Seattle's weather, drizzles and all, is preferable.

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