After years of will-they and won’t-they, T-Mobile and Sprint have finally agreed to get together. The $26B mega mobile deal will combine the nation’s third as well as fourth largest wireless carriers. The combination would get strong enough to compete against industry leaders AT&T and Verizon. According to the deal, Sprint parent SoftBank will take the seats on the board of the new company, and T-Mobile parent Deutsche Telekom will assume control of the two businesses. The new company will be simply called as T-Mobile. The day-to-day control of the combined business would be taken over by T-Mobile CEO John Legere and his management team. The director of the new board will be Sprint CEO Marcelo Claure. By the first half of 2019, the deal is expected to close. Will the combination of T-Mobile and Sprint, carriers have upped their levels to win the competition. They are providing everything from unlimited data plans to free Netflix, and even a free year of service. So, after the talks in November last year, they are finally together with their forces and resources to compete better.
Over the last few years, both companies have made their impact felt on the industry. T-Mobile discharged the contracts and phone subsidies and last year tried to bring the unlimited plans back to the industry in a bigger way. Sprint brought the concept of a phone-leasing plan and in 2017 offered a year of its service for free. T-Mobile has been effective in the wireless industry. Under firebrand Legere, it has outstripped the rest of the competitors in subscriber growth. So, this combination will create a strong competitor with the network scale to provide more for consumers and business in the form of more innovation, lower prices, and a second-to-none network experience. Also, it will be much faster than any company that can do all these on its own.
Effective Combination
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According to Legere and Claure, this combination will add jobs and will help to move quickly to 5G. Legere personally believes that it would create jobs, a reversal of idea that mergers always leads to work force cuts. According to Marcelo, this combination will change network and could offer the service at lower prices than AT&T or Verizon. Many analysts and industry executives believes this combination to be inevitable. So, it will aim to have a larger consumer base and, in turn, more revenue and resources to pour into future investments. At the end of last year, Sprint had 54.6 million connections and T-Mobile had 72.6 million customers, while Verizon has 116.2 million connections as of the first quarter and AT&T has 143.8 million customers.