America’s two largest mobile operators – T-Mobile and Sprint (third and fourth in the list of the US largest mobile operators) – agreed to merge. T-Mobile Chief Executive Officer John Legere, who, by agreement, will have to lead the joint company, said on his official Twitter page.
“I’m excited to announce that @TMobile & @Sprint have reached an agreement to come together to form a new company – a larger, stronger competitor that will be a force for positive change for all US consumers and businesses!,” In a video announcing the merger plans, Legere and Sprint’s CEO Marcelo Claure said they seek to create “a network with the highest spectrum capacity in US history”.
To this end, Ledger said that his company will hire thousands of new employees. The nationwide network, according to T-Mobile’s CEO, will position the US as the leader in providing 5G communications.
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The last time Sprint, CNN reminds, was valued at $ 26 billion, while the market value of T-Mobile was $ 55 billion. After the merger, as CNBC News sources familiar with the situation earlier indicated, this figure could hit about $ 140 billion. At the same time SoftBank, which owns about 85% of Sprint, as specified by the interlocutors of the channel, within the agreement will allow Deutsche Telekom, which owns almost two thirds of T-Mobile, to consolidate the profits of the new company.
However, CNN reminds, these were not the first merger talks between Sprint and T-Mobile about the merger. The two companies started mulling merger back in 2014. But then, the channel notes, they decided to abandon this idea because of fears of falling under sanctions from Obama’s administration for monopolizing the mobile communications market.
In the meantime, industry experts are sceptical where consolidation would be beneficial to consumers.
“I don’t see the benefits for consumers in a marketplace where Verizon and AT&T and new T-Mobile would be calling all the shots,” said Michael Copps, a former FCC commissioner and special adviser to the watchdog group Common Cause.