USA based Sprint is reportedly cooling on a possible bid for its smaller rival T-Mobile as regulators are said to be worried about the deal.
Antitrust officials have recently expressed strong sentiments against a deal publicly, causing Sprint to review its plans, theWall Street Journal reported, citing people familiar with the matter.
Sprint Chairman Masayoshi Son and Chief Executive Dan Hesse have met with various regulatory officials in recent weeks but were said to have been surprised at the level of hostility to the deal being expressed, which was far greater than they had expected.
Bill Baer, head of the Justice Department's Antitrust Division reiterated a general wariness toward wireless consolidation in a speech to the New York State Bar Association.
While the regulators are said to be concerned that the market could end up consolidating into three large players, Sprint and T-Mobile USA are themselves said to be worried that they lack the scale necessary to compete with the big two -- AT&T and Verizon -- effectively leaving the market as a duopoly.
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