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US: New pricing makes T-Mobile takeover even more unlikely

 |  January 15, 2014

As telco regulators look to preserve competition among the nation’s top four wireless carriers and support lower pricing models, reports say T-Mobile’s business strategy to earn more subscribers makes it even more less likely the company would be bought out by rival Sprint.

T-Mobile CEO John Legere jointed the firm in 2012 and revamped the company to offer lower prices than rivals, making several promotional moves that have stirred up the competition to new levels.

Reports say the rivalry is exactly what the US Department of Justice has hoped for when it sued to block giant AT&T’s proposed takeover of T-Mobile in 2011. According to one analyst, Jeff Silva of Washington’s Medley Global Advisors, authorities will not likely approve of a T-Mobile buyout in order to preserve the current competitive landscape consumers are seeing today.

Full Content: Businessweek

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