US Skeptical on Sprint's Possible T-Mobile Deal

Apparently, Sprint board members Masayoshi Son and Dan Hesse met recently with Justice Department officials who said they would view a Sprint acquisition of wireless rival T-Mobile with skepticism.

The conversation, which occurred in January, shows the seriousness of Son's interest in a deal, and his highest hurdle. US antitrust authorities regard the current lineup of four national mobile-phone carriers as important to maintaining a competitive market, and department officials indicated at the meeting that a deal combining Sprint and T-Mobile could face regulatory difficulties. It doesn't appear the meeting has deterred Son, who has been the driving force behind the effort to merge Sprint, the third-largest US carrier by subscribers, with No. 4 T-Mobile. The Justice Department meeting was one of a series of discussions Son and Hesse plan to hold with regulators and lawmakers. The discussions involve more issues than just the possible T-Mobile deal, including the introduction of new technologies and wireless competition in an industry considered heavily regulated, said a person familiar with the talks.