Verizon Communications Inc. may be getting into the wireless consolidation game with published reports indicating that the telecommunications provider, which controls 55 percent of No. 2 wireless operator Verizon Wireless, is set to make a bid for Sprint Corp., which controls the nation’s third-largest wireless operator Sprint PCS. Reports, citing infamous unnamed sources, said the offer was waiting for approval from Verizon Wireless partner Vodafone Group plc.
If approved, which analysts note could be accomplished only with serious divestitures, Verizon Wireless would re-take its previous position as the nation’s largest operator with more than 60 million wireless subscribers. Both Verizon and Vodafone denied they had spoken regarding a possible deal to acquire Sprint.
Verizon’s interest in Sprint comes days after similar reports indicated that Sprint was set to make a $36 billion bid for the nation’s fifth-largest operator Nextel Communications Inc., which would strengthen Sprint PCS’ No. 3 position in the wireless industry with more than 32 million subscribers and allow it to better compete against its two larger rivals, Cingular Wireless L.L.C. and Verizon Wireless. Industry observers note that Sprint’s offer to Nextel could be made public as early as tomorrow.
Analysts said that while there is a good chance Verizon could make a bid for Sprint, the likelihood of that deal being approved by government regulators is slim compared with a possible deal between Sprint and Nextel. Others note that Verizon Wireless does not need to participate in wireless consolidation as the carrier is already far and away the fastest-growing wireless operator, and its recent deal to acquire NextWave Telecom Inc. has solidified its spectrum portfolio in support of its next-generation network buildout.
