Sprint Is Having Second Thoughts About A Potential T-Mobile Acquisition

Sprint Is Having Second Thoughts About A Potential T-Mobile Acquisition -- AppAdvice

The potential acquisition of T-Mobile by rival carrier Sprint has already hit some major roadblocks.

According to The Wall Street Journal, Sprint is rethinking its plans after hearing vocal oppositionfrom government officials during a recent meeting:

Sprint Chairman Masayoshi Son and Chief Executive Dan Hesse, who met with officials at the JusticeDepartment and the Federal Communications Commission in Washington in recent weeks, alwaysknew a deal would be a tough sell, the people said. But the men were surprised by the level ofopposition and its very public nature, one of the people said.

The sides are now letting the message sink in, the people said. Mr. Son may yet pursue a deal, they

added, believing Sprint's U.S. options are limited if the country's third-largest carrier doesn't getbigger. But if the sides do decide to go ahead, they could take weeks or more to ponder strategy andperfect their regulatory arguments, two of the people said.

The Justice Department and FCC both believe that the U.S. mobile landscape is more competitivewith four major carriers. That was a major reason for blocking AT&T's deal for T-Mobile back in2011.

Son, who is CEO of Sprint parent SoftBank, still wants to make the deal happen. But according tothe report, he will relent if the acquisition is seen to be "outright impossible."

Sprint has been contemplating the acquisition since at least late last year.

While T-Mobile has been the perennial fourth-place carrier in the United States, the company hasbeen especially aggressive recently in courting new customers. In January, T-Mobile unveiled a newplan to pay the ETF fees (up to $350) for any new subscriber. The deal is good for up to five lines ofservice.

For other news today, see: Apple Announces iTunes Radio Is Now Available In Australia, ChevroletAirs A New Equinox Ad, Shows Off Siri Eyes Free Integration, and Updated: Still Got Flappy BirdInstalled? Then Your iPhone Could Be Worth A Lot.

http://appadvice.com/appnn/2014/02/sprint-is-having-second-thoughts-about-a-potential-t-mobile-acquisition/