This just in!
CNBC is reporting AT&T will purchase T-Mobile US. That makes more sense than Sprint buying them, as AT&T and T-Mobile both use GSM technology.
More on this as is available!
Update: The deal is for $39 billion ($25B cash, $14B stock). Deutsche Telekom will own 8% of AT&T and become its largest stockholder.
The deal is good for AT&T because it gives them more spectrum which will be important in their 4G battle against Verizon and Sprint.
The deal is good for T-Mobile because they would not be able to expand into 4G (real 4G that is) otherwise because of the immense costs.
The big question is, will it be good for customers? That remains to be seen, but there have already been concern this will reduce innovation by shrinking the number of competitors.