T-Mobile and Sprint Merger

After exploring the idea of merging for years, T-Mobile and Sprint are to finally merge.

18:45 01 May 2018

Five months after Sprint and T-Mobile officially called off the last attempts at a merger, the two companies have confirmed on Sunday that they will finally join forces. The combined entity will give Verizon, which has 111 million subscribers, and AT&T, which has 78 million subscribers, a serious competition.

 

The merger aims to develop a 5G powerhouse, an effort that T-Mobile and Sprint separately were lacking the resources to lead. In a press release, T-Mobile said: “The new T-Mobile will have the network capacity to rapidly create a nationwide 5G network with the breadth and depth needed to enable U.S. firms and entrepreneurs to continue to lead the world in the coming 5G era,”

 

The combined Sprint/T-Mobile will allow both companies to take advantage of each other’s resources so they can lower prices and better compete with competitors.

 

The deal is yet to be finalised by regulators, who generally held an unfavorable view of shrinking the US mobile carrier market from four to three.