Softbank's next move is expected to make waves in the US wireless market when it enters into a partnership with Internet giants Google and Amazon.com. This is the second step in the plan while it waits for the approval of its US$20.1 billion investment in Sprint Nextel according to fund manager Macquarie Capital.
Softbank announced in October that it would purchase 70% share in Sprint but requires federal regulator approval but is expected to be approved by summer. Sprint has another pending transaction, its acquisition of Clearwire. Another option would be partnering with Dish Network in the near future after Sprint finalizes the Softbank and Clearwire transactions.
Macquarie adds that Sprint would likely become the top provider in wholesale network services to Internet companies, including Amazon and Google.
Analysts predict that Softbank would pursue wholesale deals where it delivers network capacity to mobile virtual network operators. Google and Amazon are exploring operations to become a MVNO.
Join the Conversation