Sprint and T-Mobile aim to merge without giving up any assets

Sprint and T-Mobile aim to merge without giving up any assets
With Sprint majority owner SoftBank reportedly making the decision to move forward on a merger with T-Mobile, Reuters learned from confidential sources that both carriers plan on completing the transaction without selling any assets. That is important as far as the deal goes because part of the attraction for T-Mobile is combining its low-frequency spectrum in the 600MHz-700MHz band, with Sprint's huge inventory of high-frequency 2.5GHz spectrum. This combination could help the newly merged company when time comes to build out their 5G pipeline.

Today's report also claims that both T-Mobile and Sprint are working together to come up with a negotiating strategy in case U.S. regulatory agencies like the DOJ request the divestiture of assets. If the deal does go through, the new company would have approximately 131 million subscribers. At the end of the second quarter, AT&T had 136.5 million customers with Verizon's 147.2 million subscribers putting Big Red on top.

Speaking of regulators, the main two that T-Mobile and Sprint need to sign off on any deal are the FCC and the DOJ (FTC). The pair forced AT&T to back out of a bid for T-Mobile in 2011, and were prepared to do the same when a T-Mobile/Sprint combination was being discussed in 2014. This time around, the FCC and FTC are both said to be skeptical of the deal, but neither agency can make an official comment until the transaction is announced and reviewed. One analyst, John Hodulik of UBS, sees the FCC forcing a T-Mobile/Sprint to sell some of its combined 300MHz in spectrum holdings. That amount tops the amount of spectrum owned by Verizon and AT&T.


T-Mobile CEO John Legere is expected to run a merged T-Mobile/Sprint. The current buzz around the water cooler suggests that Sprint stockholders, including 80% owner SoftBank, will not receive a premium for their shares. As a result, SoftBank and the other Sprint stockholders will own 40% of a combined company. Deutsche Telekom (which owns 64% of T-Mobile) and other public T-Mobile stockholders will own the remaining 60% of the new carrier.

source: Reuters

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11 Comments

1. MrShazam

Posts: 987; Member since: Jun 22, 2017

SprinT-Mobile incoming. Wonder where John Legere will be sitting in the merged organization, still the CEO (that should be a win win for consumers) or somewhere lower (wouldn't expect any benefit for consumers in this case)...

3. uncle_gadget

Posts: 1050; Member since: Sep 20, 2017

The population of the US is about 350M. How is the combine total of the 4 carrier's, more than the population of the US? As of 2016 the US has 323M people. So about 25M have left. Are these carrier's offering service s9mewhere else? US territories?

4. microsoftnokiawin

Posts: 1268; Member since: Mar 30, 2012

maybe some people get more than one sim ??

5. VLaRueC

Posts: 189; Member since: Dec 18, 2012

A single account can have multiple lines. For example, single person can have a phone, a home phone, a watch, a tablet, and something for their car. 1 person - 5 lines.

8. RandysBuddy

Posts: 12; Member since: Jul 08, 2015

When it gets to a point that a single customer requires multiple lines of service, to me anway, it will be more of an indicaator that the Wireless industry as a whole has failed. Spectrum is a Finite US resource owned by the taxpayers; leased to companies through a formal auction and licensing process. When people require to carry multiple SIMs, we'd be at a point when customers are not able to use WiFi technology; and we'd have to fix a few issues causing constraints in the system, ecosystem lock-in, and a market which is fairly anti-competitive.

6. fyah_king unregistered

I have 5 sims by myself.:)

7. izim1

Posts: 1599; Member since: Feb 04, 2013

I have 3 sims, 2phones/1tablet just for myself and the wife has 2, phone/tablet. That's 5 lines for just 2 people. I know im not even close to being the only one. Specially when a lot of employers offer work cells, and with tablets and wearables starting to gain traction.

9. talon95

Posts: 998; Member since: Jul 31, 2012

Many millions have a line at work and at home, I expect that's the main factor in offsetting people without phones and those on regional carriers.

10. trojan_horse

Posts: 5868; Member since: May 06, 2016

I have 2 lines and it's enough for me!

11. DOGIEFRESH

Posts: 316; Member since: Jul 15, 2009

If the merger goes through I ll go back to Death Star in a heartbeat

13. vladimvp1

Posts: 9; Member since: Jan 12, 2010

many people have two phones their personal plus their company phone

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