Deutsche Telekom looking to buy Sprint Nextel; if true, they’ll become the 2nd largest USA operator

Monday, September 14, 2009 8:20

Deutsche Telekom (NYSE: DT), otherwise known as T-Mobile (NYSE: DT), is looking at buying Sprint (NYSE: S) Nextel according to sources that spoke to the Telegraph. A bid could come within the next few weeks. As of Q2 2009, Verizon (NYSE: VZ) had 87.7 million customers, AT&T 79.6 million, Sprint Nextel 48.8 million and T-Mobile 33.5 million customers. If T-Mobile and Sprint Nextel merged, together they would have 82.3 million customers and therefore become America’s second largest operator. Technologically speaking, there is a bit of a problem with the merger. Sprint has a CDMA network, while T-Mobile uses GSM. Sprint is also one of the few nutjobs around the world trying to get WiMAX off the ground, for reasons only Dan Hesse and God know. If T-Mobile does indeed decide Sprint Nextel, which today is worth .6 billion, they’re going to have to spend an insane amount of money just to switch Sprint’s infrastructure over to GSM. It’s tricky, it’s risky, but AT&T and Verizon need a swift kick in the pants.

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