Deutsche Telekom and U.S. T-Mobile To Bid On Sprint Nextel?

It appears that Deutsche Telekom has contacted Deutsche Bank’s advisers to review a possible multi-billion dollar bid for Sprint Nextel, U.S.A.’s third largest carrier. Sources at the Telegraph have said that Deutsche Telekom may submit a bid for Sprint, which has a market valuation of $10.6 billion, within the next few weeks.

T-Mobile’s U.K. and U.S. operations have been weak lately. The first quarter loss of the two have dragged Deutsche Telekom down a €1.1 billion this quarter alone. After the joint venture with placed with France Telecom’s Orange, René Obermann, chief executive of Deutsche Telekom is now focusing his efforts on the struggling US operation of T-Mobile.

Although the possible merger could lead U.S. T-Mobile/Sprint/Nextel’s operations to challenge AT&T’s second-place spot with 78.2 million customers. But the remaining question is, how would the three networks, Sprint’s CDMA, Nextel’s ISDN and T-Mobile’s GSM work together? That remains to be seen if the deal goes through.

[via Telegraph UK & PhoneScoop]