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If Sprint buys T-Mobile, it may have to slash prices: analysts

10
Jun
2014

By Marina Lopes WASHINGTON (Reuters) – If Sprint Corp acquires T-Mobile US Inc, it could save up to $6.6 billion on network, equipment and operating costs, but it will have to slash its prices to match the target companys steep discounts, analysts said on Monday. Sprint, under Chairman Masayoshi Son, has been hesitant to join other carriers in cutting fees because a decline in revenue would hurt its stock price, analysts say. Its shares have risen 8 percent since Dec. 12 on speculation it was looking to acquire T-Mobile from Deutsche Telecom AG. Sprint’s prices are much too high, but if Sprint cuts prices, its stock will fall, said Craig Moffett, lead analyst at MoffettNathanson.

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