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Should Sprint buy T-Mobile?

Matt Hamblen | Jan. 30, 2014
Sprint is expected to report a big loss of subscribers in its next earnings report, expected Feb. 11, further fueling speculation that No. 3 carrier Sprint has to merge with brash and bold "Un-Carrier" T-Mobile US.

The two companies could benefit by using carrier aggregation technology across their various spectrum bands. "Sprint and T-Mobile have for some time had the largest aggregate spectrum holdings, meaning that in many top 25 markets they will have the largest capacity to carry wireless traffic," Menezes added.

While Menezes doesn't believe the merger is a good idea, he said it's important to "never underestimate Softbank [with its] long-term perspective on the market that will enable it to ride out the short-term disruptions that would attend a T-Mobile acquisition."

SoftBank could also have bigger, global plans.

"The big wild card here could be Deutsche Telekom and what Softbank might be arranging with DT with its huge international networking and cellular footprint," Menezes said. "SoftBank is always a 'strategic' buyer."

 

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