It's official: T-Mobile-Sprint merger talks are over

It's official: T-Mobile-Sprint merger talks are over
The other day, Sprint majority owner SoftBank had decided to end merger talks with T-Mobile and its majority owner Deutsche Telekom over which side would have majority control of the combined firm. But T-Mobile lobbed in a last minute counter offer and there was hope again that a deal could be salvaged. Instead, Sprint CEO Marcelo Claure said today in a joint statement with T-Mobile, that even though no deal was reached, both Sprint and T-Mobile see the benefits to a combination of the two wireless operators. Nonetheless, Claure said that "we have agreed that it is best to move forward on our own."

Consumers are cheering the failure of the deal to go through since the result will probably be more price cutting amid the fierce competition in the industry. A merged T-Mobile-Sprint would have been a major challenger to number two AT&T, and could have given Verizon a run for the top spot in a few years. With its hoard of 2.5GHz high-frequency spectrum, Sprint would have been a perfect fit for T-Mobile and its cache of low-frequency airwaves in the 600MHz-700MHz bands. Now that nothing has changed, Sprint remains in a vulnerable position, having reported annual losses for ten consecutive years. SoftBank CEO Masayoshi Son has talked about spinning off a new company that would own the valuable spectrum as a way to unlock its value. 


T-Mobile, on the other hand, is still the fastest growing and most innovative carrier in the states. While Deutsche Telekom would have preferred a deal, T-Mobile still has its unconventional CEO John Legere at the helm, ready to continue taking the fight to Verizon and AT&T.

source: Bloomberg

FEATURED VIDEO

19 Comments

1. tyger11

Posts: 284; Member since: Oct 29, 2012

Crap, I was really hoping T-Mo would get that extra spectrum. /sigh/. Oh well.

7. matistight

Posts: 912; Member since: May 13, 2009

Extra spectrum? Quality over quantity. Sprint has neither.

16. fastfreddy123

Posts: 66; Member since: Mar 25, 2017

ACTUALLY sprint DOES! buy a clue they have lots of spectrum Tmobile could use

2. mikehunta727 unregistered

What a bunch of fallen dominoes, it all felt like it was set in stone not even a month ago

3. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

Wait longer, T-Mobile, and you'll be able to pick the Sprint-carcass clean down the road.

4. JesseJames

Posts: 226; Member since: Feb 22, 2015

We all know that it's going to happen eventually.

5. Pitrich

Posts: 239; Member since: Apr 13, 2016

Sprint is smoking crack if they thought they'd get majority

6. trojan_horse

Posts: 5868; Member since: May 06, 2016

Well, Sprint has it's reasons for wanting the majority share it to merger... But I think this merger would happen eventually.

8. matistight

Posts: 912; Member since: May 13, 2009

Yeah, they want to majority so they don't go bankrupt. They wanted the merger so they can stay in business. I hope they are gone within 5 years.

18. Dr.Phil

Posts: 2253; Member since: Feb 14, 2011

Why would you actively want that? If people were opposed to a merger because it would leave only 3 carriers competing, why do you think people would also want there to be 3 carriers with one being gone from bankruptcy? And if you think T-Mobile would be the main beneficiary due to the spectrum being sold off, think again. Verizon and AT&T would love to buy up some of that spectrum and towers.

9. Not_Amused321

Posts: 63; Member since: Jan 06, 2013

Excellent

10. roldefol

Posts: 4744; Member since: Jan 28, 2011

Good luck out there, Sprint. T-mo has been making major strides in recent years and will only get stronger.

12. L0n3n1nja

Posts: 1511; Member since: Jul 12, 2016

Might be different in other markets, but where I'm at Sprint can't even provide clear call quality, it sounds like static over a walkie talkie. They have dead spots all over and lack many features that Verizon and Tmobile offer.

13. rsiders

Posts: 1863; Member since: Nov 17, 2011

For the last 50 years we've heard this.lol Won't be the last time.

14. Justlooking

Posts: 84; Member since: Aug 27, 2014

Good news for us T-Mobile users. I'm sure the merger would have forced T-Mobile to diversify assets and lose some of the low bandwidth spectrum.

15. joey18

Posts: 648; Member since: Jul 20, 2010

t mo better than sprint

17. shnibz

Posts: 505; Member since: Sep 18, 2011

Good!..insert Carlton Banks dance

19. drazwy

Posts: 347; Member since: Jan 15, 2014

Good. Hoping Sprint doesn't last too much longer. What a s**tbox company. Guess they'd rather not exist at all then carry on.

* Some comments have been hidden, because they don't meet the discussions rules.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.