T-Mobile US and Sprint set for $65bn merger

The owner of T-Mobile is in talks to sell its United States operation to Sprint in a merger of America’s third and fourth-largest carriers in the latest consolidation move in global telecoms.

Germany’s Deutsche Telekom, co-owner of EE in Britain, would cut its 67% stake in T-Mobile USA to 15%.

Japan’s Softbank owns Sprint and the combined company would be valued at upwards of $65 billion (£39 billion). Sprint is worth $37 billion and T-Mobile USA is valued at $27.5 billion.

However, US regulators could block the deal as most national governments prefer to have at least four mobile networks to maintain competition.

Deutsche Telekom could use a windfall to reinvest in Europe, where Britain’s Vodafone and America’s Liberty Global have been buying rivals.

Telecoms firms are rushing to consolidate as mobile, broadband and TV converge. Hopes of an AT&T bid for Vodafone were scotched after the United States firm bought DirecTV.