Sprint/Nextel Ready To Break Up? T-Mobile To Buy Sprint?

[Ed Hansberry]

<div class='os_post_top_link'><a href='http://www.news.com/8301-10784_3-9936419-7.html?tag=nefd.lede' target='_blank'>http://www.news.com/8301-10784_3-99...l?tag=nefd.lede</a><br /><br /></div><p><i>"Reports wafting over the Atlantic Ocean suggest that Deutsche Telekom -- parent company of T-Mobile USA -- is considering Sprint Nextel as a take-over target. And why not? Sprint's share price is below $10, and the euro continues to dominate the dollar. Sprint's spectrum alone is worth it. That would make T-Mobile + Sprint the largest wireless operator in the United States. But could it work without falling to pieces?"</i></p><br /><p>There is further speculation that Sprint is<A HREF="http://www.news.com/8301-10784_3-9936419-7.html?tag=nefd.lede" target="_blank"> ready to ditch Nextel</A>, the "push to talk" provider it purchased in 2005, which could make Sprint an even sweeter target for a T-Mobile buyout as Nextel's value and subscriber base has been on a steady decline since 2005. The big question is, if it happens, is how do you meld the two networks based on different technologies, T-Mobile being GSM and Sprint being CDMA. In order for the deal to make long term sense, there would have to be one surviving network.</p>

[0157h7]

I discussed this in my blog posts yesterday. I think that this would be a good move for both companies. I am not sure if it would be good for the consumers though.

I also believe that the breaking rumors of a Nextel spin off play into this in a big way: 1. as leverage to strengthen the company and fight off DT or 2. To strengthen the value of the company to make it irresistible to DT.

http://digtalnauseum.blogspot.com

The 2 posts are really long but this was a pretty good synopsis.

[virain]

Let's say T-Mo buys Sprint, convert its customers to GSM and, and..... it doesn't makes scenes. Unless T-Mo plans to use Sprint network to covert it to LTE, as VzW wants to do with 700 MHz