Rumors on the Internets: T-Mobile may be consider buying Sprint in order to keep the company from lowering its prices and triggering a price war, says Merrill Lynch. “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,” the firm’s analysts said.

Sprint has lost more than 60 percent of its value since June 2007. We’re not like analysts or anything, but wouldn’t T-Mobile have to be under a lot of pressure (or be able to get a great deal) to bother buying Sprint and its incompatible network when it might be able to sit back, do nothing, and wait as the company’s few remaining customers defect? Wouldn’t a CDMA-network based company make more sense? [NYT]