There are financial rumors that DT is looking to buy Sprint, whichwas enough to send DTs stock down in Europe today. DT is said to be looking to boost its T-Mobile brand in the U.S., which is number 4 in terms of wireless providers, and to get access to spectrum and the cable MSO deals Sprint has.
There are still questions about Sprint’s viability, which is what has German markets upset. We think this might be at least the beginnings of a good deal, although how it would fare with regulators is much harder to predict. T-Mobile and Sprint are both too small to be effective competitors, but any loss of market players might spook both the FCC and the FTC.