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T-Mobile considered a merger with one of the most hated companies in US
According to a confidential T-Mobile report from 2015 (h/t: The Verge), the carrier was also looking at a merger with cable provider Comcast.
The report called for market consolidation on T-Mobile’s part, by first merging with Sprint (currently underway pending legal obstacles). It then called for the carrier to merge with Comcast, although the report noted that a Sprint merger wasn’t a prerequisite for the Comcast deal.
T-Mobile’s report says a merger with Comcast makes sense for the cable giant as mobile might be its only option for growth. Other Comcast motivations for a merger include bringing its video content to mobile, and the ability to “realize cost and network synergies.”
It’s unclear if a Comcast merger is still on the cards for the Uncarrier, but the Sprint deal certainly suggests that this is the direction the company is taking.
Then again, for all the potential financial benefits of the merger for both parties, you have to wonder if it’s the best thing from a consumer point of view. Comcast was named the most hated company in the US several times over the years, due to everything from billing to customer service. Does this suggest that T-Mobile will inherit bad customer service and sketchy billing practices?
In any event, the 2015 report notes that there are “likely no significant regulatory barriers” to a T-Mobile/Comcast deal. But with the increased scrutiny brought on by the T-Mobile/Sprint merger, a Comcast deal might not be guaranteed just yet.
Would you be in favor of a Comcast/T-Mobile deal? Let us know in the comments.