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Sprint, T-Mobile Merger 'Makes Sense'

September 04, 2012 - News

**Editor's Note: Please click here for a recap of the biggest channel-impacting mergers of Q2 2012 or here for the biggest M&A during that time in the service-provider and BSS/OSS spaces.**

The chance that Sprint will merge with T-Mobile still exists, at least according to one prominent ratings agency.

Although the companies continually have failed to follow through with merger talks in past years, Fitch Ratings has released a report saying the combination "makes sense," according to an article by Wireless Week.

A merger between Sprint and T-Mobile is logical over the long term because both companies now struggle against competition from bigger rivals – Verizon Wireless and AT&T – the report said. That – combined with the fact that T-Mobile's role as a low-cost provider "is not a recipe for longer term sustained revenue growth" – makes Fitch think now is the time for the pair to team up.

Of course, last year's proposed AT&T-T-Mobile debacle raised some serious red flags about the future of mergers among the "Big Four." The FCC and Justice Department blocked AT&T's ill-fated takeover of T-Mobile. And the fact that Sprint and T-Mobile use disparate technology for 3G also raises problems.

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