Could Sprint buy MetroPCS or Leap Wireless?

Verizon and AT&T dominate, while Sprint and T-Mobile sit in the middle, trying any way they can to snap up subscribers. Then there are the regional carriers, which are having harder and harder times picking up customers and gaining traction. Over the last month or so we’ve heard about Leap Wireless, parent of Cricket, possibly seeking a buyer or merger partner. Yesterday we heard word that Sprint could be an interested party, though reports have them more interested in Leap’s competitor, MetroPCS Sprint solidified its prepaid strength by acquiring Virgin Mobile last year, but could be further seeking a prepaid stronghold. A purchase of MetroPCS would bring not only more customers than Virgin, but also some network infrastructure. Sprint could use this to fortify or expand its existing coverage. One issue in a potential purchase centers on MetroPCS’s commitment to an LTE network. Sprint has moved in the WiMax direction, though most of the industry has gone towards LTE. An acquisition might help Sprint hedge its bets. We’ve also heard T-Mobile mentioned as a potential buyer, though its GSM network makes it less of a match. Sprint has experience with mixing networks, though its acquisition of Nextel has hardly been billed a win for the company. I doubt anything moves on the T-Mobile front, however. Beyond network compatibility, T-Mobile has other issues on its plate. The company spent $3 billion in the first three quarters of last year improving its network, and might seek an IPO in order to continue. That probably takes priority over acquiring a company running different cellular technology.]]>

1 Comments

  1. mike freeman on February 9, 2010 at 3:39 pm

    This is such a cliche. Metro and Leap should merge. That’s it. Done deal.