Talks of a merger between Sprint and T-Mobile are once again underway. Reuters is reporting that the two companies are in the final stages of merger talks and hope to complete a deal by next week. Combining the two companies would create a carrier with 127 million customers, just behind AT&T’s 135 million customers and Verizon’s 146 million customers. This merged supercarrier would allow Sprint and T-Mobile to strongly compete with the Big Two.
Talks between Sprint and T-Mobile have taken place several times. This past November, the two companies came close to completing a merger before SoftBank’s CEO ended talks over a disagreement about voting rights in the merged company. This issue is once again being negotiated as the two companies hope to finalize a deal that satisfies all involved parties.
Both Sprint and T-Mobile are preparing to launch 5G networks. A combined company would quickly increase their coverage, providing a competitive advantage against AT&T and Verizon.
Though Sprint has grown under the management of Marcelo Claure, the company has struggled to keep up with network improvements, instead relying on discounts to grow its customer base at the sacrifice of capital.
T-Mobile, on the other hand, has a far superior network and has grown steadily, but remains far behind AT&T and Verizon. This has caused T-Mobile’s owner, Deutsche Telekom, to examine merger opportunities that will allow T-Mobile to better compete against the reigning U.S. champions.
We’ll keep you posted on the development of this potential merger. For now, let us know what your thoughts are on a Sprint/T-Mobile merger. Is this good or bad for customers of the wireless industry?