U.S. telco reportedly puts T-Mobile US merger talks on hold until end of July.
Sprint has entered into exclusive talks with Charter Communications and Comcast about hosting the cablecos’ respective MVNO services, it emerged this week.
Sources cited by Reuters on Tuesday claimed that the deal under discussion could see Charter and Comcast take small equity stakes in the U.S. operator.
Sprint, which is understood to be negotiating a merger with rival T-Mobile US, is said to have put those negotiations on hold until the end of July so it can focus on thrashing out a deal with Charter and Comcast.
Both cable operators already have wholesale agreements with Verizon. Comcast has already begun offering an MVNO service, called Xfinity Mobile, to its broadband and TV customers. Charter is expected to launch its own offering in 2018.
According to Reuters’ sources, Charter and Comcast hope to reach a similar deal with Sprint, but on better terms than their agreements with Verizon.
Charter and Comcast are taking a collaborative approach to cracking the mobile market.
In May, they agreed to work exclusively together to improve their chances of success. Under the deal, neither company can agree material transactions in the mobile market without the other’s consent.