Sprint Has Abandoned Its Plans to Buy T-Mobile

For a long time, Sprint has been trying to buy T-Mobile. But now, following a move last week by a French Telecom company called Iliad, Sprint has abandoned its plans to buy the carrier.

The Wall Street Journal reports that Sprint decided late yesterday that "after months of arguing that it couldn't compete effectively without a merger partner, [it] is preparing to go it alone." It's not taking that decision lightly, either: as part of the process, it's also replacing its current Chief Executive Dan Hesse with Marcelo Claure. The new CEO is, according to the Journal, "a billionaire entrepreneur who is untested as a wireless operator."

The news brings to an end any (slim) remaining chance of Sprint acquiring T-Mobile, in a deal which would have valued it at $32 billion. With it, stocks for both carriers have also tanked.

For T-Mobile, though, the future remains promising. Everyone seems to want to buy the carrier, and interest from across the Atlantic presumably remains. For Sprint, the future will be more of a struggle: it's going to have to fight hard to build its subscriber base—as opposed to just buying one—having lost customers hand over fist for years. But promising or otherwise, right now, the futures of both Sprint and T-Mobile are uncertain. [WSJ]