Sprint Move Puts Pressure on T-Mobile

T-Mobile will have to weigh the merits of a deal with another suitor against going it alone in a market that is about to get a lot more competitive and a lot more expensive.

T-Mobile has added more than four million lucrative postpaid customers over the past six quarters -- an enviable winning streak in a market where growth has slowed to a crawl. But those gains are coming at a cost. T-Mobile is paying subscribers' termination fees when they switch. Telecommunications-industry observers have expressed concerns that T-Mobile's streak of customer gains may not be sustainable, given its cost. The carrier's second-quarter earnings won it some more converts, however. A looming spectrum auction will require big outlays of cash if the company is to remain competitive.