Possible Sprint and T-mobile merger

Possible Sprint and T-mobile merger (CNN)

CNN has a very interesting news story about the T-Mobile Buy out. Last week Bloomberg reported that Deutsche Telekom AG, the parent company of T-Mobile, is negotiating a possible sale of T-Mobile to Sprint Nextel Corp. 

T-Mobile has been taking  a beating in the U.S. market. Bloomberg noted: “T-Mobile … has lost customers at an accelerated rate as it trailed rivals in building out a third-generation mobile network and missed out on being able to sell Apple’s iPhone. About 56,000 customers abandoned T-Mobile USA last year, while Sprint, AT&T and Verizon Wireless all boosted their counts.”

My Two Cents: Purchasing T-Mobile would be a huge mistake for Sprint.