Featured: With Softbank’s Help; Sprint’s Dan Hesse Can See A T-Mobile Purchase Down the Line

October 22, 2012 - Written By Tom Dawson

I’m not quite sure what’s going on in the industry but it looks like somebody is always trying to buy somebody else which, depending on your viewpoint might not be a good thing. It looks like Sprint are now looking at gobbling up T-Mobile in the future. Whilst the deal for Japanese Softbank to buy 70% of Sprint is not yet final, Hesse and his counterpart – Masayoshi Son – are already talking about making more deals of the same nature. It’s not all that surprising considering how Softbank came to be at the position they are at now – by buying out smaller players in Japan, including Vodafone way back in 2006. Masyoshi Son has already said that he will be making regular contact as well as monthly visits to the US to make sure his $20.1 Billion investment goes well.

The two executives have been talking about the possibility of buying T-Mobile down the line, possibly when MetroPCS has been absorbed into the brand and could greatly change the face of the Wireless industry in the US. The deal between the two hasn’t even been fully approved yet however, Sprint’s Hesse sees no problems with a further deal between Sprint and T-Mobile further down the line adding that regulators would have no problem with such a thing as it would make competitors to AT&T and Verizon a lot stronger as well as present them with healthy competition. I think that Mr Hesse should be more worried about the shareholders than the regulators at this point.

Whether or not the two are going to be buying out T-Mobile – or anyone else for that matter – the two need to get this deal dealt with first to try and bring Sprint back around in the States and further Softbank’s growth in Japan. This could well be very important step for Sprint as it could help the company get LTE finally lifted up the to-do list and result in an all round stronger sprint. When it comes to it, Sprint are in a fairly good position at the moment, having just – narrowly – acquired a majority share in Clearwire the network now finds itself with little to worry about when it comes to completing a true 4G Network.