Sprint: Yes, we're talking to Softbank about 'substantial investment'

Sprint: Yes, we're talking to Softbank about 'substantial investment'

Summary: The wireless carrier game is increasingly going global as Softbank eyes a stake as high as 70 percent in No. 3 U.S. provider Sprint.

SHARE:

Sprint on Thursday confirmed that it was talking to Softbank about a "potential substantial investment" in the wireless provider.

In a statement, Sprint added that there are no assurances that the talks will result in a deal. Softbank said earlier that it didn't comment on rumors and speculation. Update: The Wall Street Journal is reporting that "substantial" could equate to a 70 percent stake in Sprint. Softbank also wants control of Clearwire, which is Sprint's technology partner. 

The speculation is that Softbank is pondering a $12.5 billion investment in Sprint, the No. 3 U.S. carrier. Sprint needs to bolster its balance sheet as it takes on a LTE network upgrade. Meanwhile, T-Mobile plans to acquire MetroPCS to beef up its U.S. presence. Verizon and AT&T remain the big dogs in the U.S. market.

Should the Softbank-Sprint transaction occur it's clear that wireless providers are increasingly thinking global. Softbank is a key wireless player in Japan and Sprint would give it access to a U.S. market that isn't aging as rapidly as its home turf.

softbank

In addition, Verizon Wireless is already a joint venture between Verizon and Vodafone. Toss in T-Mobile, owned by Deutsche Telekom in Germany, and MetroPCS and it's clear that this wireless game is going global in a hurry.

Bottom line: The U.S. is an attractive market for international carriers, who may reside in either economically or demographically challenged markets.

Related:

Topics: Mobility, 4G, Networking, Telcos, Tech Industry

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

1 comment
Log in or register to join the discussion
  • Sprint is just looking for a rescue from that $20 billion commitment they

    made with Apple to sell iPhones.

    If the SoftBank deal doesn't go through, Sprint may be looking at bankruptcy restructuring in a couple of years. They can't keep up with the wireless competition, and that deal with Apple is still not producing what they expected.
    adornoe