NEW YORK (TheStreet) -- Speculation concerning a possible T-Mobile/Sprint merger has been ratcheted up after T-Mobile (TMUS - Get Report) CFO Braxton Carter was quoted as saying that the when it comes to consolodation, "It is not a question of if, it is a question of when."
The timing of the declaration is interesting as SoftBank CEO Masayoshi Son makes his way to Washington tomorrow to speak to the Chamber of Commerce. SoftBank owns 80% of Sprint.
T-Mobile is the nation's fourth largest carrier behind AT&T (T - Get Report)
Bloomberg is reporting that Son will not call directly for a merger during his prepared speech in D.C., but will rather attempt to extol the virtues of consolidation by pointing out that only consolidation could help to unseat entrenched industry leaders Verizon and AT&T and provide consumers with the true competition they are looking for.
This is not the first time rumblings about a T-Mobile and Sprint merger have surfaced. However, momentum for the move was sullied once it was reported that the Department of Justice and FCC would not support a merger. Carter responded to the governmental stumbling block by accusing the FCC and DOJ of hypocrisy for allowing the biggest players to dominate wireless spectrum auctions.
Both T-Mobile and Sprint stock experienced a downturn last week after the chief executive of Deutsche Telekom -- T-Mobile's parent company -- said that while he was open to a deal, the regulatory hurdles would probably prevent the merger from going through anytime soon.
In the meantime, he insists T-Mobile is on solid footing as a standalone company. "If a consolidation in the U.S. mobile market will take place, we will enter that phase with an open mind, said Deutsche Telekom CEO Tim Hoettges, "At the moment we have no difficulties to run T-Mobile U.S. on a stand alone basis."
T-Mobile closed Monday up 0.58% at 30.97. Sprint closed up 0.93% at $8.71.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts