A couple of weeks ago it was being rumored that T-Mobile was getting together with Sprint; however the deal now appears to have broken down as T-Mobile now looks like it wants to get in with AT&T which is planning to buy the company for US $39 billion from Deutsche Telekom. It is being speculated that the talks with Sprint were going alongside the negotiations with AT&T and it all didn’t end very well for Sprint.
The deal, however, makes much more sense on a technical level as T-Mobile runs on the same GSM technology as AT&T, something which Sprint did not offer. The two companies do have some small differences in the builds of their networks, but those are relatively easier to iron out and blending them together should be relatively easier. This may also bode well for the AT&T customers as it can lead to faster adaptation of 4G which will close the gap with Verizon. Now, the biggest hurdle in front of this deal appears to be the legal process of getting an approval which looks as if it will be a very long and drawn out process due to monopoly concerns.
If combined, AT&T and T-Mobile will make the single largest telecom carrier in the United States. The company will dethrone Verizon from the top spot by several million customers, though some competition will still be left in the market. The rival companies all have different opinions about the deal. The CEO of Sprint, Dan Hesse, is completely against such a move as he argues that if these two companies come together then they, together with Verizon, will occupy around 79% of the wireless telecom market which will stifle innovation.
