Sprint ‘meets Comcast and Charter’ over wireless service deals
Sprint, Comcast and Charter enter into negotiations over wireless services, say reports
Sprint is in talks with Comcast and Charter over deals to
boost their respective wireless service offerings in the US.
Sources claim that Sprint has entered into an exclusive two
month period of exclusive negotiations with Charter and Comcast, putting its rumoured merger with T-Mobile US on hold until July. But an agreement with Comcast and
Charter does not mean Sprint will not also seek a merger agreement with Deutsche Telekom-owned T-Mobile US, the sources also added.
A deal between T-Mobile US and Sprint has been long overdue, with
cost cuts and other synergies in the range of $6 billion to $10 billion.
The talks come in line with the previous
deal agreed on by the two cable providers, which prevents either company
from buying or merging with wireless companies without the other's permission.
A previous deal between Comcast and Verizon for wireless
services using Verizon’s Wi-Fi hotspots and spectrum, sees Comcast and
Charter now in talks with Sprint to secure a similar network-resale agreement
on better terms, the sources said. The Wall Street Journal, which originally reported on the
talks, said Charter and Comcast were in talks to take an equity stake in Sprint as
part of an agreement. Sprint's majority shareholder is Japanese company SoftBank.
Sprint sees the partnership as increasing competition in the
market, which should help alleviate any antitrust concerns over a merger with
T-Mobile US, the newspaper's source added.