The wireless market could consolidate from four big players to three, if regulators allow it.
Softbank-owned Sprint has begun informal talks to merge with T-Mobile US, according to Bloomberg. The two mobile carriers had previously held merger talks in 2014, but the deal fell through after regulatory concerns.
Bloomberg reported talks between Sprint and T-Mobile are preliminary and no banks have been hired, yet. There’s also belief T-Mobile, the fourth-largest carrier in the US, could be acquired by a cable company looking for a way into the mobile market.
A quiet period from a recent government spectrum auction prohibited mobile carriers from holding negotiations over the last year. It ended on April 27, opening up the potential for mergers once again.
T-Mobile CEO John Legere recently said a Sprint merger could be a “a potential future outcome” as the regulatory environment has softened under President Trump and new head of the FCC .
Reuters reported in February SoftBank could give up control of Sprint and retain a minority stake in T-Mobile, to entice T-Mobile into a merger. Sprint is looking for more steam in the US, as T-Mobile’s UnCarrier initiative has resonated with customers.
“We may buy, we may sell. Maybe a simple merger, we may be dealing with T-Mobile, we may be dealing with totally different people, different company, ” SoftBank Chief Executive Masayoshi Son said earlier this year.
Industry watchers have said a Sprint/T-Mobile merger could face severe regulatory scrutiny.
