Sprint reportedly second
After facing an intense level of opposition from regulators, Sprint's leadership is taking a look at whether a deal makes sense.
(Credit: Lynn La/CNET)
Sprint may be second-guessing its push to acquire T-Mobile after encountering stiff resistance from regulators.
That's according to The Wall Street Journal, which reported that Sprint officials were regrouping after recently meeting with the Justice Department and Federal Communications Commission in DC.
Sprint Chairman Masayoshi Son and CEO Dan Hesse had hoped to win over regulators and at least get a fair shake at the regulatory approval for the deal, but antitrust officials expressed strong sentiments against it, the WSJ reported, citing unnamed sources.
CNET contacted Sprint for comment, and we'll update the story when the company responds.
Sprint and T-Mobile have both argued that a merger would create a larger No. 3 carrier that could more effectively compete against AT&T and Verizon Wireless. But regulators have been on keen on keeping four national carriers in the field.
An argument against the deal would be the recent success that T-Mobile has shown in adding customers. Despite its position as the smallest carrier, its combination of aggressive pricing, a loud and abrasive marketing campaign (at least to its rivals), and improved network has fueled a resurgence.
While Son wants to pursue a deal, he has signaled that he wouldn't move forward if it was impossible, accoridng to The Wall Street Journal.
Sprint and parent SoftBank both report earnings this week.
Post a Comment for "Sprint reportedly second"