Boston, MA 12/20/2013 (wallstreetpr) – That Sprint Corporation (NYSE:S) is facing a run for its money from AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ) in the U.S. telecom market and is always in public domain. But S is contemplating something that could change the landscape of telecom business in the U.S. for the times to come.
The company is considering to take over T-Mobile (NYSE:TMUS), which could can reduce the number of largest carriers in the U.S. from the present four to three. This deal can take shape, if the two companies agree as to how they are going to handle their operations and also the compatibility of devices and technology.
Sprint and T-Mobile (NYSE:TMUS) joining forces will pose a strong business threat to the leading carriers, viz., AT&T and Verizon Wireless.
The Wall Street Journal reported that executives at S are seriously mulling over the option of taking over T-Mobile, something that could materialize as early as in 2014.
T-Mobile (NYSE:TMUS) is rumored to have a plan to leave the U.S. market, as a long-term strategy, is what could facilitate the merger deal between the two companies an easy sell to their respective boards.
However, there are challenges involved as well. It is no secret that industry regulators in the U.S. always wanted to retain four major carriers competing in the market. If this notion still valid for Fed and state regulators, merger between Sprint Corporation (NYSE:S) and T-Mobile which would effectively reduce the number of major operators could be a hard sell.
For the customers, the merger between the two companies would result in competitive rates across the industry, better customer experience and more incentives in the networks. The fact that the two companies have heavily invested in the network upgrade, would also add to the improved customer experience in case of the merger deals.
If regulators stand in the way of a merger between Sprint Corporation (NYSE:S) T-Mobile (NYSE:TMUS), a merger opportunity could fall in the hands of Dish TV that has been vying for wireless investment. Dish TV taking over T-Mobile is a long dream-come true for the television company.
