Sprint and T-Mobile in merger talk?

in Blog, Sprint, T-Mobile, LTE

Sprint and T-Mobile are in merger talk according to a report from Bloomberg. It might become real as T-Mobile is losing subscribers while Sprint increased it's subscriber base.

Sprint is currently offering WiMAX based services while T-Mobile is boosting HSPA+ as 4G services. Both operators are currently offering a competitive data services, however very soon both will have have to announce their LTE plans to compete with Verizon and AT&T.

With LTE as next evolution path to HSPA+, T-Mobile can not stick to it forever. While WiMAX is ok for now but Sprint has to ultimately switch to LTE. A Sprint executive has indicated last week that company is considering to launch nationwide LTE network.

Deutsche Telecom is looking for spectrum to expand its LTE service and going with Sprint would solve this issue. Even if they do not merge they may consider sharing a LTE network or opt for LightSquared's network.

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Both are good in terms of their services that they are offering. But AT&T has opted to make an offer to buy T-mobile. This deal must be approved by the Department of Justice and Federal Communication Commission, which might prove a challenge. The merging could help customers in under-served areas. Most customers, however, would end up paying more for the very same service.