US: Sprint’s avalanche of telco change could begin this month

Sprint and its owner SoftBank are on the brink of starting an avalanche of change in the US wireless industry as the two companies said they plan to decide in the next few weeks whether to pursue an acquisition of T-Mobile, sources say.

While the companies have discussed a merger with the Federal Communications Commission and the Department of Justice – which did not seem thrilled on the idea of combining the nation’s third- and fourth-place operators – reports say the companies have not abandoned the idea.

Following discussions the companies will also approach T-Mobile owner Deutsche Telekom to relay a consensus and possibly begin planning out the deal, sources said.

As merger rumors continue to swirl, reports say a deal is likely to face intense scrutiny by regulators that wish to keep four competitors in the market. Many experts believe such a deal will almost certainly be blocked, as authorities blocked AT&T’s 2011 attempt to acquire T-Mobile.

Full Content: Businessweek

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