Sprint, T-Mobile consider joint spectrum bid - report

Sprint and T-Mobile US are working on a plan to raise around USD 10 billion to bid jointly in the next major spectrum auction in the US, people familiar with the matter told the Wall Street Journal. The companies, which have been discussing a possible merger since last year, are planning to form a joint venture that will bid in the 2015 auction of frequencies turned in by broadcasters, the report said. 

The funds are part of the around USD 45 billion financing package being put together by SoftBank to finance Sprint's acquisition of T-Mobile. SoftBank has agreed to allow T-Mobile to oversee the venture, according to the paper's sources. 

An announcement of the merger could come this summer, they said. Amid an expected long regulatory process for the merger, the operators are considering the joint venture as an interim measure. This is just one idea under consideration and it could change as talks continue, one of the people said. 

It wasn't clear how the spectrum would be divided between the companies if the deal is blocked. Sprint and T-Mobile think they will have a strong case for bidding together in the auction, given that the FCC has signaled it will not reserve enough for each of the operators to acquire as much as market leaders Verizon and AT&T.