Sprint is preparing to make a bid on its rival T-Mobile, in a merger that would create a telecom giant to compete with AT&T and Verizon, reports The Wall Street Journal.
According to sources, Sprint is exploring the regulatory hurdles involved with the merger and might make a bid sometime during the first six months of 2014. The deal could be worth as much as $20 billion.
The merger would be subject to U.S. antitrust regulations, and with Federal Communications Chairman Tom Wheeler stressing the value of competition, Sprint should anticipate close federal scrutiny.
The Justice Department stopped a merger between AT&T and T-Mobile in 2011.