Sprint Nextel may purchase T-Mobile USA

tmobile-sprint-mergerSprint Nextel is reportedly in talks with Deutsche Telekom AG to discuss the possibility of purchasing its T-Mobile USA division, according to unnamed sources who spoke with Boomberg. If made official, the deal would reportedly give Deutsche Telekom a “major stake” in the Sprint Nextel-T-Mobile USA entity.

The deal is far from final, however, as the talks have reportedly been intermittent. According to sources, the biggest hang-up in the deal has been the valuation of T-Mobile USA, which decreased in value during the fourth quarter of 2010, while shares of Sprint and Deutsche Telekom went up.

London-based Evolution Securities has placed the value of T-Mobile USA at between $15 billion and $20 billion. According to Michael Kovacocy, an Evolution analyst, Deutsche Telekom is probably expecting to get around $25 billion in the sale.

Sprint and T-Mobile — the third- and fourth- largest wireless carriers in the US — have had an increasingly difficult time competing with the powerhouses of AT&T and Verizon, each of which have larger networks — and, not coincidentally, carry Apple’s iPhone. Merging Sprint and T-Mobile into one could create and edge over AT&T and Verizon.

To make matters even more complicated, Sprint and T-Mobile operate on entirely different 3G networks, and their 4G networks are different as well, with Sprint currently operating on Clearwire-owned WiMax and T-Mobile pushing HSPA+.

If the companies were to merge, they would have to operate two separate 4G networks until they decide to dump one, and go full-bore with the other.  (Or just go with LTE 4G across the board, as Sprint may do.) Either way, the merger would be costly.

Regardless, if such a merger does go through — and there’s no guarantee that it will — the effects on the mobile market in the US would me huge and far-reaching, and could come to define the future of wireless technologies.

Press Releases

Digital Trends welcomes new creative director on the heels of other major hires

PORTLAND, Oregon, October 15, 2018 -- Digital Trends, the world's largest independently owned technology review site, announced today that Ben Hermel is joining the company as creative director. Hermel joins a growing list of major new…
Mobile

Which Verizon plan is best for you? We check out family, individual, and prepaid

Verizon offers lots of plans for individuals, your family, and folks who want prepaid service. Here is everything you need to know about Verizon's plans, from data packages and smartphones to Big Red's prepaid plans.
Deals

Save up to $1,000 with the best smartphone deals for October 2018

Need a better phone but don't want to spend a fortune? It's never a bad time to score a new smartphone and save some cash. We rounded up the best smartphone deals available that can save you as much as $1,000.
Emerging Tech

This DIY kit teaches more than coding; it teaches you how to build a smartphone

Want a crash course in coding and electronics, with something to show for it at the end? The MAKERphone is a DIY mobile phone that you can build for yourself. And, yes, it actually works.
Mobile

The Kindle Paperwhite is waterproof, so now you can read it in the tub

Amazon released a new version of the Kindle Paperwhite ebook reader, boasting improved software, more storage, and a feature that customers have been asking for: Waterproofing.
Deals

Verizon’s buy one, get one offer is the best deal on the new Google Pixel 3

If you need a new smartphone and want the best (without shelling out a grand or more), the new Google Pixel 3 and Pixel 3 XL are fantastic options. Verizon's BOGO offer is the best way to score a deal, letting you snag a free phone and save…
Social Media

YouTube is back after crashing for users around the world

It's rare to see YouTube suffer serious issues, but the site went down around the world for a period of time on October 16. It's back now, and we can confirm it's loading normally on desktop and mobile.
Mobile

Huawei Mate 20 Pro vs. Samsung Galaxy Note 9: Flagship fight

When it comes to stunning flagships, Samsung and Huawei are often the first names the come to mind. And the new Huawei Mate 20 Pro is no exception. So how does it compare to the Samsung Galaxy Note 9? We put the two to the test to find out.
Mobile

Here’s how Google’s Call Screening A.I. works, and how to use it

Google's Pixel 3 and 3 XL smartphones can take excellent photos, but there are a few artificial intelligence features that steal the show. Call Screening uses Google Assistant to answer the phone for spam calls.
Mobile

Key settings you need to change on your Sony Xperia XZ3

The first thing you need to do when you buy a new phone is dig into the settings and customize it to your liking. We’ve got step-by-step instructions for tweaking key settings on your Sony Xperia XZ3 right here.
Photography

Adobe MAX 2018: What it is, why it matters, and what to expect

Each year, Adobe uses its Adobe MAX conference to show off its latest apps, technologies, and tools to help simplify and improve the workflow of creatives the world over. Here's what you should expect from this year's conference.
Gaming

Huawei thinks its Mate 20 X is better than the Nintendo Switch

Huawei positioned its Mate 20 X, a gaming-centric smartphone, as a Nintendo Switch killer, calling it "the best portable gaming machine." The Mate 20 X has better design specs than the Switch, but it also comes with a steep price.
Mobile

These are the best LG V40 ThinQ cases to stop unsightly damage

The LG V40 ThinQ is the latest entry in LG's long line of great V series phones, but it's not invincible. The best way to protect it from potential damage is with one of the best LG V40 ThinQ cases.
Mobile

With Spotify for WearOS, you no longer need your phone to stream music

A Spotify app will soon be available for download on Wear OS smartwatches. Whether you're working out or lounging at home, you'll soon be able to access and control your music straight from your wrist.