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

[MacRumors]

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."

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, as U.S. companies did in 4G. The new company will be able to light up a broad and deep 5G network faster than either company could separately.

T-Mobile deployed nationwide LTE twice as fast as Verizon and three times faster than AT&T, and the combined company is positioned to do the same in 5G with deep spectrum assets and network capacity.

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."

"We intend to bring this same competitive disruption as we look to build the world's best 5G network that will make the U.S. a hotbed for innovation and will redefine the way consumers live and work across the U.S., including in rural America. As we do this, we will force our competitors to follow suit, as they always do, which will benefit the entire country. I am confident this combination will spur job creation and ensure opportunities for Sprint employees as part of a larger, stronger combined organization, and I am thrilled that Kansas City will be a second headquarters for the merged company."

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

 

[Andres Cantu]

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.

 

[technole]

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.

 

[garylapointe]

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).

 

[chriscrowlee]

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.
[doublepost=1525025572][/doublepost]

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.

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.

 

[Labeno]

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

 

[technole]

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.

 

[gnipgnop]

Sounds like boilerplate corporate happy talk.

 

[chriscrowlee]

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.

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.

 

[sniffies]

Hoping for Apple Wireless in 2019-2020

Oh, and Apple Bank too!

 

[UltimateSyn]

Unreal! Love it

 

[Middiebear]

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.

 

[chriscrowlee]

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.

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.
[doublepost=1525026503][/doublepost]

Sounds like boilerplate corporate happy talk.

Thankfully SOMEONE gets it!

 

[Neepman]

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.

 

[chriscrowlee]

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.

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

 

[jayducharme]

Never going to happen.... 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.

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.

 

[jecowa]

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.

Why the hate on CDMA? CDMA is so superior that the "GSM" carriers use it now instead of GSM.

 

[technole]

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.

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.

 

[TheShadowKnows!]

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.

 

[technole]

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.

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.

 

[iPhonemaster5S]

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.
[doublepost=1525025572][/doublepost]


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.

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.

 

[technole]

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.

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.

 

[lsutigerfan1976]

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.

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.

 

[The Cappy]

Hoping for Apple Wireless in 2019-2020

Oh, and Apple Bank too!

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

 

[MarkJames68]

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.

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.