Report: Sprint gives up on pursuit of T-Mobile USA

Newspaper reports cite difficulty getting regulator clearance

Sprint is giving up its plan to acquire T-Mobile USA and will name a new CEO as soon as Wednesday, according to several news reports.

Sprint, the number-three U.S. carrier, had been looking to buy fourth-placed T-Mobile as a way to compete better against Verizon and AT&T, which are both much larger rivals.

But Sprint, which is owned by Japan's Softbank, has abandoned the plan because it thought it would be too difficult to get approval from U.S. regulators, sources told The Wall Street Journal, Bloomberg News and The New York Times.

The deal would have removed a small but important player from the U.S. mobile telecommunications market, and for that reason many had suspected the Federal Communications Commission and Department of Justice would seek to block it.

While T-Mobile is the smallest of the major carriers, its aggressive price cuts and no-contract service plans have helped keep competition alive in the market.

Last week it emerged that a French telco, Iliad, was also interested in buying T-Mobile, although reports have said the deal is unlikely unless Iliad makes a substantially better offer. A deal with Iliad would be less likely to face opposition from regulators.

In a move that's likely related, Sprint will name a new CEO as early as Wednesday, Bloomberg News reported. Current CEO Dan Hesse has been in charge at Sprint since 2007.

Martyn Williams covers mobile telecoms, Silicon Valley and general technology breaking news for The IDG News Service. Follow Martyn on Twitter at @martyn_williams. Martyn's e-mail address is martyn_williams@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuestelecommunicationsprintCarriersT-Mobile USA

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Martyn Williams

IDG News Service
Show Comments

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Tom Pope

Dynabook Portégé X30L-G

Ultimately this laptop has achieved everything I would hope for in a laptop for work, while fitting that into a form factor and weight that is remarkable.

Tom Sellers

MSI P65

This smart laptop was enjoyable to use and great to work on – creating content was super simple.

Lolita Wang

MSI GT76

It really doesn’t get more “gaming laptop” than this.

Jack Jeffries

MSI GS75

As the Maserati or BMW of laptops, it would fit perfectly in the hands of a professional needing firepower under the hood, sophistication and class on the surface, and gaming prowess (sports mode if you will) in between.

Taylor Carr

MSI PS63

The MSI PS63 is an amazing laptop and I would definitely consider buying one in the future.

Christopher Low

Brother RJ-4230B

This small mobile printer is exactly what I need for invoicing and other jobs such as sending fellow tradesman details or step-by-step instructions that I can easily print off from my phone or the Web.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?