T-Mobile CFO expects more U.S. wireless consolidation, says merger with Sprint is 'logical'Alex Wagner - Editorial Director of News and Content
Speaking to Reuters, T-Mobile CFO Braxton Carter said that he expects more wireless mergers to take place in the U.S. and went on to suggest that a partnership between T-Mobile and Sprint would make sense. "It's the logical ultimate combination," Carter said of the deal, explaining that he feels that AT&T and Verizon have a duopoly on the U.S. wireless market and that a combined T-Mobile and Sprint would help to create "a more competitive environment."
When asked whether or not T-Mobile has actually discussed a deal with Sprint, Carter wouldn't say. He did admit that such a transaction would have a tough time getting approval from the U.S. government, though, after regulators shot down AT&T's attempted acquisition of T-Mobile in 2011 because it would have eliminated one of the four major U.S. wireless players.
At the end of Q2 2013, AT&T reported that it had 107 million wireless subscribers, Verizon said that it had 100 million, Sprint finished with 53 million and T-Mobile had 44 million. And so while a combined T-Mobile and Sprint would still trail AT&T and Verizon in total subscriber count, they'd certainly be a lot closer. As Carter said, though, it seems likely that a T-Mo-Sprint deal would have a tough time getting by regulators since it would eliminate one of the big U.S. carriers, leaving consumers with just three operators to choose from. What do you think of Carter's statements? Do you think it'd be a good idea for T-Mobile and Sprint to join forces?