The rumor mill is operating at full swing this fine Saturday morning, and this one is a biggie. It is being suggested that Deutsche Telekom is considering buying out Sprint Nextel. You read it right, buy them out. There are quite a few sources reporting this now, and while it is only wild speculation, it does present an interesting idea, to say the least.

The rumor originates in a German newspaper called Der Spiegel. The article does not site any sources, so it is very important to keep in mind that there is not much substantial information in it. There are a few reasons that Duetsche Telekom buying out Sprint would be a good idea. First, with Sprint’s subscribers and T-Mobile’s subscribers, the new entity would be a mega carrier. The subscriber base would be a serious contender with AT&T and Verizon. Also, it presents the opportunity to increase coverage. Each network has there respective cellular sites, and synergy sites are a real possibility.

As for why this is not a good idea, there are several set backs. First, the government. They tend to raise their eyebrows at large takeovers from oversea entities, and this could prove to be no different. Also, the whole anti competition thing. While most likely, as far as competition, the buyout would be approved, it is always something to consider. The buyout would leave Deutsche Telekom with tons of networks to manage. Including CDMA, EV-DO, UMTS, GSM, and iDEN. Watching Sprint juggle with CDMA and iDEN, it is hard to believe that Deutsche Telekom would want that burden. This is an interesting little rumor, so stay tuned.

[Via Spiegel Online]