Sprint Left Scrambling For Options After AT&T Deal For T-Mobile - WSJ.com

NEW YORK (Dow Jones)--The combination between AT&T Inc. (T) and T-Mobile USA leaves Sprint Nextel Corp. (S) even further behind in the dust.

The surprising deal widens the gap between Sprint and its two larger rivals, and would place it last among the national wireless carriers. It also puts Sprint in an awkward position--it too was in talks to merge its operations with T-Mobile, with AT&T essentially snatching up Sprint's best means to make up ground.

"This will certainly make Sprint's life more difficult," said Roger Entner, a consultant with Recon Analytics.

Sprint shares, which have gained 19% this year through Friday's close, tumbled 13% to $4.39 Monday morning in premarket trading.

Sprint may need to turn to an acquirer of its own. Cable provider Comcast Corp. (CMCSK, CMCSA), whose market cap is more than three times the size of Sprint, could be a potential suitor. Cable companies are seen needing to expand the mobile services they offer, just as wireless providers, such as AT&T and Verizon, have ramped up their video offerings in recent years.

via online.wsj.com