If the analysts are correct we could be embarking on a major change in the wireless industry with the acquisition of Sprint/Nextel by Deutsche Telekom (owners of T-mobile USA).  T-mobile has been the top tier of customer service in the wireless industry for several years while Sprint/Nextel remains at the bottom of the wireless customer service satisfaction.  On top of the poor customer service, the failing stock prices (now @ $7/share) and musical chairs among top executive positions have given investors very little confidence in the carrier’s profitability.  The Sprint/Nextel stock price has dropped a massive 48% since the beginning of the year and puts the option to buy out directly in grasps of T-mobile Deutsche Telekom.

Although the negativity around Sprint’s financial position is looming, there are several key elements that would make this deal perfect for T-mobile.  The first big bonus for T-mobile is that they would be purchasing the largest high speed mobile data network in the country.  With Evdo Rev A nearly live on Sprint and the build out of Wimax, T-mobile would jump from the bottom of data access speeds to the top in the industry.  Even Verizon’s Evdo Rev A network is still behind the rollout of Sprint and this solves the single biggest complaint by T-mobile users about their network.  From the data access speed standpoint this deal makes perfect sense.

Beyond the high speed data comes the benefit of a strong voice network.  Although Sprint is second to Verizon in coverage inside the United States, the jump from last place for T-mobile would be huge.  Better coverage, faster Internet speeds and the same low prices we have learned to love from T-mobile could really turn things around for Sprint.  The customer service improvement would be a blessing in itself even if Sprint remained entirely intact and continued offering SERO plans, but T-mobile provided all of the customer care operations.

Anyone else voting on T-mobile buying out Sprint?

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