Sprint chairman Masayoshi Son has started exclusive talks with Charter Communications and Comcast, with the cable companies discussing how they can boost plans to offer mobile services, the Wall Street Journal reported, citing sources familiar with the matter. The two-month, exclusive agreement for discussions will run until the end of July, putting merger talks with T-Mobile US on hold, the sources said.
The companies are considering a number of scenarios including one in which Charter and Comcast would invest to improve Sprint’s network –by taking a stake, for example - in exchange for favourable terms to offer mobile service using the carrier’s network. The cable companies already have such a network-resale agreement with Verizon Communications, but a Sprint deal could provide much better terms.
The talks are also considering a joint acquisition of Sprint, although this is the least likely option.
A reseller agreement with Charter and Comcast wouldn’t preclude a subsequent merger between Sprint and T-Mobile US, some of the sources said, adding that while Sprint and T-Mobile have remained far apart in their merger talks, a combination between the two companies may still be the most likely outcome.
Charter and Comcast, the two largest US cable companies by subscribers, started a mobile alliance in May, saying they would not make any merger or acquisition for one year, without consulting each other.
