We’ve been seeing fresh reports of a T-Mobile and Sprint merger recently, and the latest rumor claims that it might happen before the end of the month.
Indeed, talks of a T-Mobile and Spring merger are nothing new; after all, we’ve seen similar reports back in 2015 and then again in 2016. It’s 2017 now, and all this merger talk hasn’t really subsided. Beginning in May, we started seeing new reports of a potential merger, and according to people who are familiar with the matter, the two carriers might seal the deal as early as by the end of October. Of course, it’s not guaranteed that the merger will be approved by market regulators, but both parties seem determined to see it go through.
That’s because the landscape of the US telecommunications market has changed drastically in the past few years: T-Mobile managed to significantly expand its network and customer base with its Un-carrier initiatives while Sprint had to relinquish its spot as the nation’s third largest carrier. T-Mobile now wants to leapfrog AT&T and Verizon, and Sprint is struggling to cope with its financial loss, and the merger, loosely-speaking, could be a win-win situation for them.
If the merger fails to materialize for any reason, neither party would have to pay financial penalties.
Reports further claim that there won’t be any breakup fee. That is, if the merger fails to materialize for any reason, neither party would have to pay financial penalties. If you remember, when AT&T’s attempt at acquiring T-Mobile fell through in 2011, it had to pay the magenta network a breakup fee of $4 billion.
If the merger is approved, however, it could have far-reaching impacts on the US market. For the longest time ever, the US has had four major carriers. Having three instead, all of which are valued at tens of billions of dollars, could mean that it’ll be even harder for new carriers to enter the market. Another big question has to do with T-Mobile’s Un-carrier initiatives. Will the merger have restricting effects on T-Mobile’s generous offers or could it act as a boost? We will soon find out.
Are you currently with T-Mobile or Sprint? If not, do you think this merger would convince you to switch over? Let us know by leaving a comment below!