T-Mobile purchase might force Sprint to cut prices

Analyst Craig Moffett has identified a quandary that Sprint finds itself in. Moffett says that Sprint has been unwilling to cut its prices for fear that its stock will fall. Sprint chairman Masayoshi Son might have to take an ax to its prices anyway, if it does purchase T-Mobile. The latest rumors have Sprint offering $40 a share to buy the carrier.



Sprint customers spend $62 on average each month for service, while customers of T-Mobile pay just $50 each month, on average. Michael McCormick, an analyst at Jefferies, says that this gap cannot last in the case of a merger. "It is not a sustainable ...