Sprint is working toward a possible bid for rival T-Mobile USA, people familiar with the matter told the Wall Street Journal. Sprint is studying regulatory concerns and could launch a bid in the first half of next year, the people said. T-Mobile became publicly listed in May after merging with smaller rival MetroPCS, and now has a market capitalization of just over USD 20 billion.
The takeover would leave Sprint still in third place on the market, but much closer to market leaders AT&T and Verizon in terms of customer numbers. Executives from Sprint and T-Mobile have argued publicly that the government should allow a combination of the two companies, as it would give them the scale to make the network investments and spectrum purchases needed to compete against Verizon Wireless and AT&T. Both companies declined to comment on the report.
