Deutsche Telekom CEO Fears Regulatory Hurdles Might Get In Merger’s Way

There have been countless reports about a possible merger between Sprint and T-Mobile. Softbank, which owns the former, is believed to have already lined up financing for the deal which may cost north of $40 billion. Still no official bid has been made as both parties appear to be concerned over the reaction of federal regulators. Deutsche Telekom CEO Tim Hoettges also fears that regulatory hurdles might get in the way of creating a “super maverick” against AT&T and Verizon.

For those who don’t know Deustche Telekom owns a majority stake in T-Mobile USA, so obviously it will have a say in the merger. The company has signaled multiple times in the past that it is open to joining forces with any other player in the U.S. to better compete against the two largest carriers.

Executives from the companies involved have mostly spoken out in favor of a merger. T-Mobile’s CEO recently made comments in favor of the merger, Sprint CEO believes a “stronger number 3” will be better for competition and and DT’s CEO is evidently in support as well.

Though Sprint will definitely be cautious before it makes a bid. After AT&T’s failed bid to acquire T-Mobile back in 2011 the company will certainly make sure that regulators approve the deal. If it doesn’t see that happening it probably won’t go for it.

Adnan Farooqui
Categories: General
Tags: Sprint, T-Mobile