According to Bloomberg, Sprint and Deutsche Telekom AG are chatting about the the possibility of a merger between Sprint and T-Mobile USA. While neither company will directly comment on this rumor, Bloomberg says anonymous sources have confirmed that on-and-off talks are underway.
Sprint and T-Mobile are third and fourth, respectively, in the U.S. behind Verizon and AT&T. T-Mobile lost customers last quarter, which is making it difficult for Sprint to determine how much the U.S. branch of Deutsche Telekom is worth.
While a merger would collectively strengthen their marketplace position, it could be a technological nightmare. Sprint runs over CDMA and WiMax while T-Mobile uses GSM and HSPA+. Meanwhile, Deutsche Telekom is entertaining all available options for T-Mobile, including buying wireless spectrum from Clearwire to help boost their 4G network coverage.
This isn’t the first time we’ve heard chatter about Sprint and T-Mobile joining forces and it probably won’t be the last. We’ve also heard talk of Sprint possibly dropping WiMax for LTE, so perhaps that could figure into this deal as well. Stay tuned.