Sprint Gives Up Pursuit Of T-Mobile - Twice

Sprint Gives Up Pursuit Of T-Mobile

Overland Park, Kan. — Sprint and majority owner SoftBank have given up their pursuit of a Sprint/T-Mobile merger that they hoped would create a stronger national carrier, citing the difficulties of getting approval from federal regulators, the Wall Street Journal reported.
Author:
Publish date:
sprint_4_3.jpg

Overland Park, Kan. — Sprint and majority owner SoftBank have given up their pursuit of a Sprint/T-Mobile merger that they hoped would create a stronger national carrier, citing the difficulties of getting approval from federal regulators, the Wall Street Journal reported.

The long-struggling Sprint, meantime, said it replaced CEO Dan Hesse with Marcelo Claure, chairman/CEO of cellular distributor Brightstar, which was purchased early this year by SoftBank. Claure also sits on Sprint’s board.

Sprint, the No. 3 carrier by subscriber base, has lost money every year since 2007, and its subscriber base has been shrinking in the wake of network disruptions caused by a massive network overhaul that is now largely complete. T-Mobile, the reinvigorated No. 4 carrier, has been posting subscriber gains of more than a million in recent quarters, though it is not profitable yet.

A merger would have reshaped the retail landscape because the two carriers likely would have consolidated their store counts to eliminate overlapping stores. Many wireless specialty stores that carry the T-Mobile name but aren’t operated by T-Mobile also might have been closed down. And CE retailers that sell service from multiple carriers would have had one less carrier represented in their stores.

A separate bid for T-Mobile is pending from French carrier Iliad, which launched service in France in 2002 with sharp pricing. Iliad bid $15 billion for a 56.6 percent stake in T-Mobile, which is majority-owned by German’s Deutsche Telekom, the Wall Street Journal reported.

Both Iliad and Japan’s SoftBank, Sprint’s majority owner, are known for disrupting their markets with aggressive pricing and promotion.

Featured

Related Articles