Analysts: Sprint/T-Mobile must merge or one will fail2014-04-14 10:03 by Daniela
Tags: Sprint, T-Mobile
Sprint and T-Mobile merger has been in talks for quite some time. According to a recent analysis from New Street Research, Sprint and T- Mobile US need to merge to effectively compete against AT&T Mobility and Verizon Wireless, because one of the companies will ultimately fail if they are not able to merge.
Although Sprint and T-Mobile are national telecom players, they are far behind Verizon and AT&T. Neither of them would be able to contend with the likes of their bigger rivals in isolation. The only solution for the two is to join forces and emerge as a stronger player that would effectively compete with the Big Red and the Dallas carrier, instead of giving namesake competition.
However, New Street Research said that, if Sprint and T-Mobile attempted a merger today, regulators at the FCC and Department of Justice would move to prevent the transaction.
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