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T-Mobile, Sprint may look to get together again

The two carriers and their respective parent companies are in early talks about joining forces.

Josh Miller/CNET

Rivals T-Mobile and Sprint may end up on the same team.

The companies are in early talks with each other about a deal to consolidate, Bloomberg reported Friday. Executives from Sprint's parent, SoftBank, and T-Mobile's parent, Deutsche Telekom, have also been in "informal contact," according to the report.

A combination would create a larger third player to compete against Verizon Wireless and AT&T, by far the No. 1 and No. 2 carriers in the US. T-Mobile has been on a tear over the past two years, outstripping the industry in subscriber growth, while Sprint has slowly showed signs of turning itself around.

Sprint tried to buy T-Mobile in 2014, but the deal fell apart in the early stages because regulators weren't interested in further consolidation in the wireless business. But President Donald Trump takes a more business-friendly stance, which opens the door to a deal.

Deutsche Telekom CEO Tim Hottges told investors Thursday that he sees several advantages to consolidation.

T-Mobile and SoftBank representatives weren't immediately available for comment. Sprint and Deutsche Telekom declined to comment.