Sprint and T-Mobile Reach Merger Agreement, Plan for 'World's Best' 5G Network

Discussion in 'MacRumors.com News Discussion' started by MacRumors, Apr 29, 2018.

  1. MacRumors macrumors bot

    MacRumors

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    Sprint and T-Mobile have finally reached a merger agreement, which means if approved by regulators, two of the four major carriers in the United States will combine into one entity in an all-stock deal worth billions.

    The new combined company will be named T-Mobile and current T-Mobile CEO John Legere will serve as the Chief Executive Officer. Sprint and T-Mobile say the company will be a "force for positive change" in the U.S. wireless, video, and broadband industries, supercharging T-Mobile's Un-carrier strategy and allowing the new company to "lead in the 5G era."

    According to the terms of the deal, T-Mobile plans to exchange 9.75 Sprint shares for each T-Mobile share. Deutsche Telekom, T-Mobile's parent company, will own 42 percent of the combined company and SoftBank, Sprint's parent company, will own 27 percent. Deutsche Telekom will have voting rights over 69 percent of the new company and will appoint nine of its 14 directors, while Sprint will appoint four.

    T-Mobile CEO John Legere said that the combined company will "create a fierce competitor" that's able to "deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience," while current Sprint CEO Marcelo Claure, who will serve on the board of the new company, said that the merger will make the U.S. a "hotbed for innovation."
    Along with the faster rollout of 5G technology, Sprint and T-Mobile say the merger will lead to job creation, lower prices for consumers, improved coverage, and "unprecedented network capacity."

    The deal between Sprint and T-Mobile still needs to be approved by antitrust regulators in the United States, but if it goes through, the U.S. will have three major carriers rather four. The combined Sprint and T-Mobile company will have nearly 100 million customers, putting it second only to Verizon.

    Sprint and T-Mobile are aiming to close the deal "no later" than first half of 2019. More information about the merger can be found in the press release and in a new "All for 5G" website the two companies have created.

    Article Link: Sprint and T-Mobile Reach Merger Agreement, Plan for 'World's Best' 5G Network
     
  2. Andres Cantu macrumors 68030

    Andres Cantu

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    Sprint never took advantage of their 2.5GHz spectrum and this new T-Mobile will, along with their 600MHz spectrum.

    Perhaps two GSM carriers vs. one CDMA one will accelerate the death of CDMA. Nothing worse than the current Intel vs. Qualcomm modem debacle that could be avoided with no more CDMA.
     
  3. technole macrumors 6502

    technole

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    This is a good fit, their combined messaging about 5G, improved spectrum profile, and job growth since TMobile merged with MetroPCS is what will sell this merger.

    The fact John Legere and Mike Sievert will run the new company, is also a plus. These guys have been a bulldozer in the industry. We can thank them for killing long term contracts, and the more liberal cell policies today.
     
  4. garylapointe macrumors 65816

    garylapointe

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    It'll be interesting to see how this shakes things up.

    Most people I know around the Detroit area seems to be AT&T (I'm AT&T) or Verizon (or a much smaller carrier).
     
  5. chriscrowlee macrumors 65816

    chriscrowlee

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    Never going to happen.

    The thing most people don't realize is what T-Mobile and Sprint are in this country.

    90% of Americans living close to or below the poverty level use T-Mobile, Sprint, or one of their MVNO carriers that operate on their network. The two carriers and their MVNOs make up 14 of the top 18 MVNO carriers, all which would be at risk if the two merged.

    If the carriers were to merge, it could potentially turn 14 carriers into one. So those who say it doesn't eliminate competition don't understand the reality of the situation.

    It can't happen. If it does, it'll be the end of wireless competitive pricing in America as we know it. Every time carriers try to merge, they promise jobs, more competition, and better coverage. My question to TMO is this, what happened to their last several times they came promising coverage to Rural America? It's complete garbage when a wireless company's CEO comes on and begs for public support by promising bringing rural coverage to America. It hasn't happened in 25 years of promises and 25 years of mergers. It's not going to happen now.

    Want to see choice, competition, and technological progress end in America? Support this merger.
    --- Post Merged, Apr 29, 2018 ---

    I guess a sucker is born every day. Every merger in US history has been sold by CEOs saying expedited technology adoption and rural coverage will happen if the merger is approved. If you buy into this then I have some beachfront property in Idaho to sell you. This has been the sell every time. And has never happened in the history of US wireless carrier mergers.
     
  6. Labeno macrumors 6502

    Labeno

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    Worlds best except in the USA where we will be using outdated networks because the companies don’t want to relinquish control forcing us to pay high rates for old technology
     
  7. technole macrumors 6502

    technole

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    A lot of people forget that Sprint isn’t just a cell network but also a Tier 1 internet backbone provider. Who knows, you probably are going through a Sprint network posting here.
     
  8. gnipgnop macrumors 65816

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  9. chriscrowlee macrumors 65816

    chriscrowlee

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    Sprint has sold off nearly all it's real assets. Not much left of them anymore. It's all Verizon, Centurylink, AT&T, and then the Level3s of the world.
     
  10. Goldfrapp macrumors 601

    Goldfrapp

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    Hoping for Apple Wireless in 2019-2020

    Oh, and Apple Bank too!
     
  11. AceFernalld macrumors 68000

    AceFernalld

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  12. Middiebear macrumors member

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    There were a lot of buzz and marketing words being thrown around in that video.

    5G! Rural America! Coverage! Jobs! Jobs! Jobs!

    It was like watching a late night informercial.

    I do wonder just how well T Mobile and Sprint are competing with Verizon and AT & T...

    But I have a hard time believing what these CEOs are trying to sell, looks like they’re trying too hard.
     
  13. chriscrowlee macrumors 65816

    chriscrowlee

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    Every merger has been pushed by these promises, and nothing has really changed for coverage, rural america, or technology adoption as a result of any merger in the last 25 years.
    --- Post Merged, Apr 29, 2018 ---
    Thankfully SOMEONE gets it!
     
  14. Neepman macrumors 6502

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    t-mobile isn't even a mobile company. Its a bottom feeder finance company trying to sell financing on everything in sight to whatever fool happens to walk in their store.
     
  15. chriscrowlee macrumors 65816

    chriscrowlee

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    This is natural when you're feeding off the low income, no\poor credit demographic.
     
  16. jayducharme macrumors 68040

    jayducharme

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    Exactly why, IMO, this is likely to happen under the current D.C. administration.

    I'm glad Legere is going to be in charge. That gives me hope that the innovation will continue. Looking forward to 5G ... if and when the iPhone supports it.
     
  17. jecowa macrumors regular

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    #17
    Why the hate on CDMA? CDMA is so superior that the "GSM" carriers use it now instead of GSM.
     
  18. technole macrumors 6502

    technole

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    Sprint kept the most valuable assets like the MVNOs and Sprintlink. It would be pretty lousy to get rid of your own backbone network to handle backhaul.

    T-Mobile has to depend on ATT for some of it's backhaul today.
     
  19. TheShadowKnows! macrumors 6502a

    TheShadowKnows!

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    I just dream of fixed 5G broadband to my home which breaks the duopoly of cable providers (RCN and Comcast in my region).

    And provide real competition.

    A big ask. But adios to fixed cable and trench digging. Hello high-capacity wireless.
     
  20. technole macrumors 6502

    technole

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    People said the T-Mobile merger of MetroPCS was going to be bad for customers. That turned out to be a good decision. The brand still exists today, created more jobs, and allowed TM to gain network scale from a CDMA network nonetheless.
     
  21. iPhonemaster5S macrumors 6502

    iPhonemaster5S

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    I have a hard time believing that T-mobile and Sprint are the carriers of choice for those with lower incomes, at least from my experience. I’ve typically seen those who are not doing well financially with Verizon and AT&T and they insist on paying the higher price because they Mistankenly believe that it’s worth significantly more. I personally use T-Mobile as do most of my friends and family, and none of us are anywhere near financial difficulty.

    That being said I do believe this merger won’t be good for the Telecom industry as it won’t foster as much competition as it used to.
     
  22. technole macrumors 6502

    technole

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    It's possible, as T-Mobile could be seen as a victim of it's own success.

    When the DOJ blocked the ATT and T-Mobile merger, that gave them a lot of cash (invoking a non-merger breakup fee) to go against the big two. Eventually they merged with MetroPCS. CEO John Legere is the reason we don't have wireless contracts anymore today, along with several other "Uncarrier" initiatives that the competition has copied and played sheep to.
     
  23. lsutigerfan1976 macrumors 68020

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    #23
    I don’t understand this. There seems to be millions of ppl willing to shell out $40-$50 a month to finance a phone for the rest of their life. That to me is crazy.
     
  24. The Cappy macrumors regular

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    Apple doesn't need to be splitting its attention any more than it's already doing.
     
  25. MarkJames68 macrumors 6502

    MarkJames68

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    #25
    Interesting. I switched over a year ago due to free international data and fixed monthly pricing. All my devices are BYO and they’ve never screwed me on anything. I pay around $200 a month for 4 lines and 2 tablets. No overage charges, no hidden fees, nothing. Thanks John Legere.
     

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