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More Buyers Jostling For T-Mobile US Inc (NYSE:TMUS), Including Comcast Corporation (NASDAQ:CMCSA)

Boston, MA 05/23/2014 (wallstreetpr) – The U.S. No. 4 telecom operator T-Mobile US Inc (NYSE:TMUS) is in a big demand from subscribers to buyers. The company looks attractive because of its proven business acumen so far. While it may not be the No. 1 telecom operator in the U.S. market, the company has shown remarkable achievements in the red-hot telecom industry with its new subscriber addition and network upgrading.

According to the latest market updates, the company overtook Sprint Corporation (NYSE:S) as the U.S. No. 3 in smartphone purchase, in 1Q2014. T-Mobile purchased 6 million smartphones in 1Q compared with Sprint’s 5 million during the same period. The company’s aggressive discounts paid off in attracting new subscribers to its network in 1Q than its U.S. wireless peers in 1Q.

However, T-Mobile US Inc (NYSE:TMUS) still trails Sprint in the total number of subscribers.

Sprint Seeks To Buy Tmus

While Sprint and T-Mobile US Inc (NYSE:TMUS) are fierce competitors in the telecom market, the companies are also in talks that could see them join forces. The move to tie-up TMUS and Sprint would not only reduce the number of leading carriers in the U.S. to just three but would also become an added disadvantage for the two leading operators AT&T Inc (NYSE:T) and Verizon Communications Inc (NYSE:VZ). Softbank, the majority owner of Sprint, has all alone shown interest in acquiring T-Mobile.

Comcast Weigh In

Comcast Corporation (NASDAQ:CMCSA) seeks to expand its presence in the mobile video services market. As such, analysts at UBS believe that the company might bid for T-Mobile to support its mobile video services thesis. Furthermore, the move by AT&T to bid for satellite-TV provider DirectTV (NASDAQ:DTV) may become another big reason Comcast may be interested in T-Mobile.

Industry Reorganization

 As the case with pharmaceuticals, telecom operators are aggressively pursuing deals to support their growth amid mounting market challenges. The attractive position of T-Mobile US Inc (NYSE:TMUS) makes it not only a smart target, but also an important partner for peers that seek to tap into its strong sales and marketing team and Internet providers that seek to expand opportunity in the mobile platform.

Published by Steve Hackney

Steve Hackney is a corporate finance professional with over 14 years of experience in cash management and investing. He earned a Bachelor of Science in Finance from Florida State University and holds a Certified Treasury Professional certification. Steve lives in Orlando, Florida with his family.

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