Sprint, T-Mobile said to be in "active" merger talks

Sprint, T-Mobile said to be in
The oft-rumored T-Mobile-Sprint merger rumors restarted today with word that both carriers are in "active" talks. Shares of T-Mobile are currently up over 5% on the day to $65.05, while Sprint's stock is up 7.5% to $8.26. CNBC reported today that Sprint parent SoftBank and T-Mobile majority owner Deutsche Telekom have been engaged in talks about a deal involving a stock swap that would allow Deutsche Telekom to be the majority owner of the combined company.

According to those rumored to be close to the action, negotiations are ongoing and a final deal-if indeed there is one-is still weeks away from being announced. As we've mentioned in the past, Sprint has been hoarding its high-frequency 2.5GHz spectrum, while T-Mobile is building out the 600MHz in low-frequency spectrum that it spent $7.9 billion for during the FCC's auction of television broadcasters' airwaves. Low-frequency bands tend to travel farther and penetrate buildings better, which might explain some things if you are a Sprint customer. On the other hand a combination of both low and high-frequency spectrum could be utilized when 5G networks start getting built.

The big question is whether this deal will get regulatory approval. Back in 2014, talks of a T-Mobile-Sprint merger heated up. These talks were quickly cooled off once it became apparent that both the FCC and the DOJ would not approve the deal. Cowen & Company Equity Research this week lowered the chances of a Sprint-T-Mobile merger being announced from 80%-90% to 60%-70%. The brokerage firm put the odds of such a deal gaining regulatory approval at 50%-50%.


If a deal is done, the U.S. would then have three large major wireless carriers, all roughly the same size. T-Mobile, led by its charismatic president and CEO John Legere, has become the most innovative of the four. The nation's third largest carrier led the movement away from subsidized pricing and also was the instigator behind the current trend to offer unlimited high-speed data plans.

source: FierceWireless

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18 Comments

1. tallmatt81

Posts: 71; Member since: Dec 22, 2016

NOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO please god no

2. drazwy

Posts: 355; Member since: Jan 15, 2014

YEEEEEEEEEEEEEEEEEEEEEEESSSSSSSSSSSSSSS please god yes

9. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

That's what she said!

3. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

You are so right...... The end of competition as we know it. Tmobile has only one advantage over sprint..... Speed. Coverage wise sprint is the winner. All haters can check the facts and then say that it's not true..... Go to root metrics This may have been pre-planned since sprint never bought one blip of 600mhz spectrum. If it happens they should dominate with out having to make changes to the network. On fi I access both.

5. dcgore

Posts: 234; Member since: Feb 24, 2012

If the merger goes through, there is no way Verizon and AT&T won't cry foul over spectrum holdings. It is very likely that whatever this new company comes out to be, will have to relinquish spectrum in order to have the regulators approve the merger.

10. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

T-mobile has the better coverage, that's using rootmetrics data to prove it as wellhttps://www.whistleout.com/CellPhones/Guides/who-has-the-best-coverage. Even going to rootmetrics and looking at the maps you can tell which is better. T has a 94% reliability and S has 93%, it's slight but don't talk s**t unless you have the facts my friend.

13. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

http://www.rootmetrics.com/en-US/rootscore/map/national/united-states/2017/1H Here we go since forever Sprint has always beat Tmobile. It's OK keep drinking Tmobile kool aid.... They have coverage gaps that's huge outside of urban city areas. My friends and family that use I it lose service in a lot of places my sprint phone has service

15. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

Yes well no one has sprint where I live because sprint has no service here lol.

16. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

You must like Donald trump.... Fake news reporting then say the opposite of what the facts say. For at least the last 17 years sprint has had better service coverage than Tmobile. So because you and your friends live under a rock and Tmobile needed more customers, and placed a service tower in your area, you still don't fill out the service gaps.... Rofl

17. Arch_Fiend

Posts: 3951; Member since: Oct 03, 2015

Hey now I didn't fake anything, I didn't write that news article lol and I didn't vote for trump lol. Everything is cool man, T-mo is the best network hands down regardless of who has the best coverage and that includes not only sprint but vzw and att as well.

4. PSAfromThisGuy

Posts: 145; Member since: Jan 16, 2017

2 crappy networks with horrible customer service join into 1 larger crappy network with the same crappy customer service... ive had my run around with the 2 providers... never will I ever go that route again... lol

7. drazwy

Posts: 355; Member since: Jan 15, 2014

Counting down the days till T-mobile rolls out 600mhz in my area so I can go back to them. I moved and had to go with Verizon. Bad company. Terrible customer service. WAY overstated coverage and network speed. Congested back-hauls. T-mo was fantastic. Can't wait to go back.

6. p51d007

Posts: 704; Member since: Nov 24, 2013

Once there were many, now there will be three. The only price competition comes from the MVNO's. I remember when they broke up "MaBell" in the 80's. It's taken a little over 30 years, to almost bring them back under one roof. But, at least we have something to use besides the plain black home phone, and payphones that we didn't have 30+ years ago.

8. CreeDiddy

Posts: 2206; Member since: Nov 04, 2011

Well no $50/mo single plans. Welcome $70/mo. Rude awakening for Sprint customers...lol!

11. JadeMoon

Posts: 145; Member since: Aug 12, 2012

Sprint customers say "Yess!" and us T-Mobile customers say "NOOOOOOOOOO!"

14. QWIKSTRIKE

Posts: 1459; Member since: Mar 09, 2010

Sprint has better "service" than Tmobile. Tmobile temporarily has faster speed than Sprint. Sprint has financial issues because of mismanagement by Dan Hess and the over payment for iPhone that is about 15 billion dollars on the balance sheet of debt that has weighed heavily against Sprint cash flow Had Dan Hess invest that money into Sprints infrastructure it would be a force to be recon with. Since 2012 Sprint has completely built it's network from the ground up. Taking old equipment offline and reinstalling new equipment costs customers as these upgrades were happening. No one ever mentioned this before bashing Sprint about service issues. Now the debt is keeping them from finishing the complete roll out of network back haul as fast as it is needed. They have some of the best, and the most Spectrum of all of the other networks. Fwiw the merger would help Sprint and Tmobile spectrum wise. For the industry it would curb the competition. For the consumers it would be back to higher prices with no honest competition among carriers that exist as we know it today. As a Sprint customer and consumer l am against it but I understand the reason. Coverage wise Sprint has the advantage see the root metrics evaluation for the last 17 year's until the first half of the year... Period. Together they can take over since there will be no need to change spectrum signals with the newer phone technology as with the Nextel situation. A win for Tmobile, Sprint, and the industry competition wise. A temporary win for both carriers subscriber wise until price increases start rolling out to reward the STOCKHOLDERS VALUE as McClure said. This statement he made shows he has only the profits of the stockholders in mind as he moves forward while we the supporting consumer gets pushed to the way side for profit.

12. RGreen

Posts: 83; Member since: Jul 06, 2012

Got to love it

18. Soundjudgment

Posts: 370; Member since: Oct 10, 2016

"It's Sprin-T Fresh!"

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