Last week the rumor was that Deutsche Telekom wanted to buy Sprint Nextel Corp., something the analysts said would be a terrible move.
This week the rumor is that Deutsche Telekom might be taking a more back-door approach. Bloomberg says Deutsche Telekom wants to get into the 4G game in the United States and would do that by gaining access to Clearwire Corp. (CLWR)- and MetroPCS Communications (PCS)-controlled airwaves.
Reception to that idea seems to be a bit warmer than a direct takeover of Sprint. One reason is that Clearwire needs funding – Deutsche Telekom could provide that in return for airwave access. And Deutsche Telekom owns T-Mobile, whose financial performance the past few quarters has been nothing if not lackluster. If Deutsche Telekom scores a deal with Clearwire and MetroPCS, T-Mobile will finally be able to pursue fourth-generation technologies. It’s lagging behind larger rivals in this area.
“This would be an answer that would be good news for everyone,” Craig Moffett, an analyst at Sanford C. Bernstein & Co., told Bloomberg. “It helps check the box for T-Mobile, which is desperately seeking a 4G answer.”
