Sprint's 4G move opens way to merger

Sprint Nextel, the troubled US mobile phone operator, is examining a technology shift that could pave the way to a merger with T-Mobile USA, Deutsche Telekom's struggling US unit.

Dan Hesse, Sprint's chief executive, said that the company was considering using a fourth generation wireless technology called LTE that enables fast web browsing on mobile phones. T-Mobile USA is likely to adopt the same LTE technology, which means that a merger with Sprint could become feasible. In 2008, Deutsche Telekom looked at buying Sprint and merging it with T-Mobile USA, but the German telecoms group decided against the move. This was partly because Sprint, the third largest US mobile operator, and T-Mobile USA, the fourth largest, use different 3G wireless technologies.