T-Mobile and Sprint could agree on merger deal in October

A Sprint - T-Mobile merger that could shake up the USwireless industry has been in the rumor mill for years. Now, the deal is closeto being finalized - according to Reuters and "people familiar with thematter."  

Reportedly, T-Mobile and Sprint are "close to agreeingtentative terms" on the merger. Japan'sSoftbank, Sprint's parent company, would own at least 40%, but not more than 50%of the newly-formed wireless carrier, while Germany's Deutsche Telekom,T-Mobile's parent company, would retain a majority stake.

Reuter has it that a final deal could be reached by the endof October. Of course, even if Softbank and Deutsche Telekom agree onevery tiny detail regarding the merger, the deal will still need regulatory approvals.

As you may remember, some years back, AT&T agreed to buyT-Mobile, but the deal eventually fell through - one of the main reasons forthis being opposition from the US Department of Justice, which argued that such an acquisition would "substantially lessen competition." It remains to be seen how amerger between T-Mobile and Sprint will be seen by US authorities.

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If T-Mobile and Sprint eventually merge, they'd form awireless carrier comparable to Verizon and AT&T in terms of subscribers (abit over 130 million). However, the new carrier would likely still be no. 3overall, behind both Verizon and AT&T. We'll be keeping a close eye on this, and report back when new, meaningful details are available.

source: Reuters