Verizon Wireless CEO Daniel Mead says his company isn’t interested in buying Sprint Nextel despite speculation that a buyout might happen following the news that AT&T plans to buy T-Mobile USA.
Verizon isn’t interested in buying Sprint
“We’re not interested in Sprint. We don’t need them,” Mr. Mead said at the CTIA Wireless Conference, according to Reuters.
AT&T announced over the weekend that it struck a deal with Deutsche Telkom to buy T-Mobile USA. The purchase still needs to pass standard regulatory approval, which A&T expects could take up to 12 months. Once completed, the US$39 billion deal will make AT&T the single largest mobile service provider in the U.S.
“At closing, AT&T will immediately gain cell sites equivalent to what would have taken on average five years to build without the transaction, and double that in some markets,” AT&T said in a statement.
Mr. Mead also said Verizon has no plans to oppose the AT&T deal.
Sprint had apparently been interested in purchasing T-Mobile USA before AT&T swept in and struck its own deal. With T-Mobile off the table, speculation arose around the idea that Verizon might buy the carrier to help keep its lead over rival AT&T.
1 Comments
The ATT purchase isn’t the move awaiting a VZ countermove. It IS the countermove to VZ buying Alltel in 2008. By the time the T-Mobile merger is complete, VZ will have closed some of the gap. This guarantees ATT parity or better, in effect, against a competitor that is consistently outgrowing them year-over-year. Overall, a good move, as the stock jump reflects.
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