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Sprint moves on CEO, T-Mobile bid signal transition

Grant Gross | Aug. 7, 2014
Now that Sprint's replaced its long-time CEO and dropped a bid to acquire T-Mobile, what's next for the carrier? Answer hazy, ask again, analysts say.

But Walter Piecyk, a mobile analyst with BTIG Research, said he was surprised by the decision. T-Mobile parent company Deutsche Telekom, seeing a resurgence at T-Mobile, may have been unwilling to let the subsidiary go, he wrote Wednesday.

"While press reports have indicated Sprint's concern over regulatory approvals, which clearly played a significant role, we have to wonder if the larger issue was Deutsche Telekom's increasing unwillingness to sell as their performance exceeded Sprint's and new buyers emerged," Piecyk wrote. "Whatever the reason, the deal appears dead for now and telecom investors will now brace themselves for whatever [SoftBank] has planned for the United States within the next 6-9 months."

U.S. Federal Communications Commission Chairman Tom Wheeler's reaction to the reports that Sprint has ended its T-Mobile bid shows what an uphill battle the deal would have faced before the agency.

"Four national wireless providers is good for American consumers," Wheeler said in a statement. "Sprint now has an opportunity to focus their efforts on robust competition."

 

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