Will T-Mobile and Sprint Nextel Disrupt U.S. Mobile Market?

It long has been clear that both T-Mobile USA and Sprint Nextel would have to do something substantial to dramatically change their lagging market share in the U.S. mobility market.

Verizon Wireless is the current leader with about 32 percent market share, while AT&T has about 29 percent, according to wireless analyst Chetan Sharma. Sprint Nextel has about 18 percent share, down from about 25 percent a couple of years ago, while T-Mobile USA has about 12 percent share.

A T-Mobile USA merger with Sprint Nextel would create a single company with perhaps 30 percent share, creating a wireless market with three "evenly-matched" contestants. The big difference is that AT&T and Verizon would continue to operate wireline assets, while a new company would operate as a wireless pure play.

So now there are reports that Deutsche Telekom, T-Mobile USA's parent, will launch some sort of effort to merge with Sprint Nextel or otherwise structurally change its market position.