Sprint Nextel Corp. (NYSE: S) was just rumored to be under the takeover auspices of European telecom giant Deutsche Telekom. DT has been rumored to be looking strongly at Sprint Nextel to bolster its T-Mobile USA brand in the U.S. But now, that deal appears unlikely according to Thomas Weisel analyst James Breen.Breen even cut his rating to market weight from overweight based on the fact that an actual DT takeover bid was not about to materialize. Indeed, something I mentioned a few days ago was the sheer technical complexity of T-Mobile USA running three completely separate wireless networks. A Sprint Nextel and T-Mobile USA combination would never have the economies of scale of either Verizon Wireless or AT&T, Inc. (NYSE: T) -- the top two wireless carriers in the U.S.
Breen is more than likely correct here in stating that Sprint's recent ventures such as its "Any Mobile" calling plan and discounts on the Palm Pre aren't yet priced into its shares. Sprint may seen lowered revenues as it lets many of of customers call any mobile number in the U.S. for free while potentially continuing to shed tens of thousands of customers every month.
Closing Bell: Economic Catapult for Thanksgiving & Black Friday (WMT, TGT, GRMN, GOOG, MSFT)
Deere up on Q4 earnings performance
Reid Hoffman: LinkedIn will go public (at some point)
Add your comments