Of course logically both could happen…rumors are flying that Sprint (NYSE: S) may sell off Nextel, and has hired Morgan Stanley, reports SeekingAlpha. Then Merrill Lynch analysts had a field day with a conspiracy theory: that Deutsche Telekom (NYSE: DT), owner of T-Mobile and the world’s sixth largest phone company, may consider acquiring Sprint to block a price war in the mobile phone industry…“In such a price war scenario, we think T-Mobile would face the most pressure, and Deutsche Telekom would see the increased urgency to drive market repair,” according to the firm’s report.

Or they could actually enter the price war for much less.