US wireless operators Sprint and T-Mobile announced Saturday they had called off merger talks after failing to clinch mutually agreeable terms, ending a potential tie-up that would have dramatically impacted the sector in the United States.

T-Mobile, an affiliate of Germany's Deutsche Telekom, and Sprint, a subsidiary of Japan's SoftBank, are the third and fourth largest US wireless operators, respectively.

Together, the pair would have had 131 million subscribers, virtually matching second-ranked AT&T and posing stiff competition to market leader Verizon Communications.

"The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders," T-Mobile US president and CEO John Legere said in a statement.

"However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record."

The two firms had held talks in 2014 on a merger but ended discussions in the face of opposition from US regulators.

In the latest round, reports said T-Mobile's German parent group had insisted on a majority stake and that SoftBank did not want to cede control.

"While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own," said Sprint president and CEO Marcelo Claure.

"We look forward to continuing to take the fight to the duopoly and newly emerging competitors."

SoftBank chief executive Masayoshi Son, who was among the first businessmen to meet President Donald Trump after his election victory last year, had been reportedly pushing for the tie-up as part of his effort to invest $50 billion in business and job creation in the United States.

source: AFP