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Sprint CEO Hesse considers move to LTE; possible T-Mobile USA merger?

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Sprint, which currently operates its 4G network on WiMAX, may consider a move towards using LTE. In an interview with Financial Times, CEO of Sprint, Dan Hesse, gave this statement:

“We have the spectrum resources where we could add LTE if we choose to do that, on top of the WiMAX network,” he added. “The beauty of having a lot of spectrum is we have a lot of flexibility.”

He is receiving bids from telecoms equipment manufacturers who want Sprint’s business in order to deploy LTE technology. If Sprint does, indeed, move towards using LTE, then the possibility of a T-Mobile USA and Sprint merger once again becomes a reality. Back in 2008, Deutsche Telekom, the parent company of T-Mobile USA, considered a merger with Sprint, but the two companies were headed on different paths in terms of 3G technology. However, T-Mobile is scheduled to deploy similar LTE networks in the next few years, meaning both T-Mobile and Sprint will be operating on the same 4G technology in the next two to three years if Sprint chooses to do so.

Currently, both Sprint and T-Mobile are lagging behind Verizon and AT&T making a move between the former companies almost necessary. T-Mobile has even been rumored to bite the dust come 2011 unless a merger deal is pulled off. Hesse even says there is “logic” by merging the two lagging companies but refused to entertain the idea any further. René Obermann, chief executive of Deutsche Telekom, said no multi-billion Euro deals would take place this year, meaning the merger (if it were to happen) would take place in 2011 or beyond.

Via [Financial Times]

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