French carrier Iliad’s bid for a majority stake...

French carrier Iliad’s bid for a majority stake in T-Mobile US (CD Aug 1 p1) could make a Sprint/T-Mobile deal an even tougher sell for regulators, said Guggenheim Partners analyst Paul Gallant in a Monday research note. Iliad’s bid is “likely to reinforce regulators’ instinct” that the U.S. market can still support four national carriers, Gallant wrote. “It’s one thing for regulators to base a challenge to Sprint/T-Mobile on projections that four players are viable. It’s another for regulators to know that an existing telecom operator is willing to bet its own money on that same belief.” Gallant also said language in an FCC rulemaking notice weighing in against joint bidding arrangements by the national carriers (CD Aug 4 p1) could be another sign of FCC resistance to a Sprint/T-Mobile deal.