We saw a number of rumors and talks pointing out to this moment when two renowned US carriers are now becoming one of the largest network company in Mr.Trump’s country. T-Mobile and Sprint have finally agreed to merge, the first rumors pointing to this were circulating through the web in September 2017, however, a few months later the conversation seemed to have ceased with no agreement from both parts.
Today T-Mobile agreed to pay the whopping amount of $26 million to acquire Sprint and its clients. Originally the two carriers planned to merge in 2014, but their plans were crushed down by Obama administration. Now we are in 2018, and Donald Trump is the ruler, and for that reason, the two companies believe that the chance of a deal approval is much more likely to happen.
If both companies merge, the combined forces of two largest network companies will make a single strong contender that will go against the two other giants AT&T and Verizon. Due to the reduction of the available competition, both companies are still looking if the US regulatory departments will approve the merging, one time that reducing the number of active companies in a sector only strengthens the oligopoly. Anyway, both companies aren’t waiting for the US approval to announce all its plans after the fusion. According to them, their first plan for their combined force will involve the rollout of 5G technology in the United States, both companies aim to deliver the 5G connectivity to more than 100 million of users.
Gizchina News of the week
The Fused company will do some little restructuration, the current T-Mobile CEO John Legere will run the company, with current COO Mike Sievert becoming COO and Company President. The Sprint CEO Marcelo Claure and SoftBank CEO Masayoshi Son will both sit on the company’s board. As previously expected, Deutsche Telekom will hold 42% stake in the company, Sprint will hold 27% and the remaining amount will be held by public shareholders. The single company will reportedly generate thousands of American jobs, with lower costs and great economies of scale, according to a statement made by T-Mobile.
The new home of Sprint and T-Mobile will be located in Bellevue, Washington. Everything seems to be going smooth and the upcoming results of this fusion may sound good, however, the deal still needs US regulatory approval and the OK from both companies shareholders. Both companies seem pretty confident that the merging will go through, however, we still need to wait for the coming days, before taking any conclusion.
