Sprint ‘meets Comcast and Charter’ over wireless service deals

By:
Natalie Bannerman
Published on:

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.