Sprint, T-Mobile merger expected after September

July 30, 2014

sprint-tmobile-merger Amazonaws

T-Mobile and Sprint have been supposedly close to a deal for some time now. But now, according to Reuters who spoke to people familiar with the matter, the merger will not occur before September.

In June, Japan’s SoftBank Corp, which controls Sprint, and T-Mobile owner Deutsche Telekom AG agreed to terms of a deal, which has Sprint paying around $40 per share for T-Mobile, which values T-Mobile at nearly $32 billion.

As Reuters notes, Sprint is very keen on making sure that all parts of the deal are flawlessly done, likely knowing that their company may be financially dead if the merger does not go through and they are forced to hand over spectrum and billions to T-Mobile.

how-a-t-mobile-sprint-merger-would-change-the-us-wireless-carrier-market-chart

Although SoftBank Chairman Masayoshi Son has argued that a merger would give the merged companies leverage to compete against the two dominant rivals, he continues to face an uphill climb in convincing US regulators who turned down a AT&T/T-Mobile merger because they believed that the country was better off with four national wireless carriers.

Comments

  • Mystery Man

    :(

  • RaiDei

    Personally, I think that this could be a huge plus, at least for those of us on Sprint. I’m sincerely hoping that the merged T-Sprint gets moved to all GSM.

    • jay555

      Don’t bet on it. The more likely scenario is that all T-Mo customers will be forced into using CDMA. Sprint would then repurpose the GSM spectrum to beef up it’s crappy non-existent 4G network. The other benefit that CDMA offers sprint is that they control what phone you use since you can no longer just swap your SIM card out between phones. Anyone who’s ever been a Sprint customer knows how much they love to control their customers and their phone choices. Sprint is notorious for NOT grandfathering anything, they’re motto has always been “you wanna a new phone, you need a new plan”. They don’t care if you bought the phone outright and are simply trying to connect it to their network. All in all, if this deal goes through it’ll be very bad news for T-Mo customers or for anyone who values freedom and choice.

      • Shad_Stang

        Wouldn’t a beef up of the “crappy” CDMA network with GSM eliminate the crappy label you put on Sprints network?

        Or does your hatred not let you think reasonably?

        • jay555

          Repurposing T-mo’s spectrum won’t make Sprint’s network any better. This merger isn’t about making Sprint better, it’s about destroying their competition. And my hatred for Sprint (which I admit I have a lot of) isn’t because of their network. Reread my original post and you’ll see that I hate them because of how they love to control what phones they allow on their network and what plan you can have with that phone. Sprint to me is the worst of the 4 carriers, the only reason more people don’t realize that is because they’re so small. But god help us if they get any bigger than they already are.

          Put your fanboyism towards Sprint aside and maybe you’ll be thinking reasonably yourself.

          • bwash30

            My hope is that thus doesn’t go through and if it does that sprints doesn’t bother tmobile’s network and repurpose their network to tmobile’s bands seeing other than. Size tmobile has a much better network.

      • Shad_Stang

        Wouldn’t a beef up of the “crappy” CDMA network with GSM eliminate the crappy label you put on Sprints network?

      • Bob Reilley

        I’ve bought phones outright before and I never needed a new plan with sprint. That’s the benefit of buying it outright, you can leave anytime you want.

    • Arturo Raygoza

      Exactly, sprint sucks so hard only they have something to gain by this deal. T-Mobile’s service would be butchered having to carry all you sprint customers. Thats why they want to grab on to T-Mobile like a lifesaver but will pull us down too. If you want better service switch to T-Mobile, but this deal needs to die swiftly.

  • Neo Morpheus

    All I have to say to T-Mo…

  • Matthew James

    You all have to realize ONE thing: the only reason why Sprint wants T-Mobile is because of their recent success. If it weren’t for that, Sprint wouldn’t even be giving TMO US a second thought.

    And Sprint is horrible. Their CDMA network is useless and outdated technology. Anybody trying to defend it just looks pathetic.

  • Urbz

    I was kinda wishing Carlos Slim could pick it up. With his money and resources, I bet T-Mo could out do Verizon Network.

  • M3D1T8R

    Bad news. This will ruin the one “lesser evil” carrier we have in the US. We better all call and lobby congress for this to not go through, and hope it doesn’t pass approval.

  • M3D1T8R

    Can anyone point out any legit historical cases of industry consolidation actually increasing competition and helping consumers?
    I can’t think of any.

  • THE ORIGINAL EARTHMOM .

    Hmmm…as a (mostly contented) MetroPCS smartphone customer — of almost two and half years — I know what it feels like, to think a larger company is going to gobble you up. SO FAR, T-Mobile doesn’t seem to have interfered with my happy relationship with MetroPCS, as they have essentially kept themselves separate from each other. However, I’m waiting for the other shoe to drop, in that regard. In the last 4.5 months, I also became a data-only user, who purchased a Nexus 7 from T-Mobile. They gave me a wonderful deal, and their people are nice…but their accounting processes are the business world’s most stupidly useless — and insane — bookkeeping system, I have ever seen…and I am a retired, professionally trained, Full-Charge Bookkeeper; I know what I’m talking about. So-o-o…I have been concerned about the ultimate, long-term results of the Metro/T-Mo merger. Now, I fear T-Mo may be selling-out all of it’s dual-entity consumers. I simply don’t even want to think (too much) about what THIS possibly freakish conglomerate, could mean to me, at all levels. (-_-)

    • Arturo Raygoza

      Metro and T-Mobile isn’t a merger, its different.

      • http://www.facebook.com/The.Original.Earthmom THE_ORIGINAL_EARTHMOM .

        It is one of several differing, available merger-types of business acquisition transactions, Arturo, but categorically a merger none-the-less, my friend. If you visit the MetroPCS website, and scroll to the very bottom of the page, you will find the T-Mobile / T-Mobile USA Inc. name(s) on some of the various links and info listed there.

  • Arturo Raygoza

    ATENTION!! sprint bought out clear ISP and has ruined it to hell. I am a clear customer and the service is shit and so is the customer support, clear WiFi? Hell my phone on T-Mobile is waaaaay faster, I literally play cod online teathered to my phone and its faster, super faster. Government please don’t let sprint ruin our service!!

    And to those nay sayers who inhibit more outcries against this merger by claiming the government won’t allow this merger think again. IF Sprint thought that they would lose this merger and all the money and spectrum they surely wouldn’t risk it. A loss is a death blow, they are VERY confident this will happen.

  • David Soto

    Its like reading comments from Horses with blinders on. Sprint doesn’t “suck” their CDMA tech does, just like Verizon’s 3G. This deal should go through and Johnny boy should run it, I believe this merge will benefit both parties.

  • Jamie Yoak

    Looks like Sprint will be making checks out to congress again.