Home - , , - T-Mobile and Sprint Continue to Inch Closer to Finalizing Merger Deal

T-Mobile and Sprint Continue to Inch Closer to Finalizing Merger Deal

T-Mobile Sprint merger deal
The last few days have seen both T-Mobile and Sprint release their respective earnings report for Q3 2017. Their most recent quarterly reports, however, did not mention any new information about the status of the possible merger deal between the two major US wireless carriers. Still, there are reports that both companies are actually still busy finalizing the details of the tie-up.

For instance, Reuters has reported that T-Mobile and Sprint are preparing special committees of their boards of directors, in order to make a decision on whether or not to push through with the merger deal. These board committees are critical, mainly because both mobile operators are majority owned by Deutsche Telekom AG from Germany and SoftBank Group Corp from Japan, respectively, and they could be sued by minority shareholders if they fail to implement ground rules that would help ensure the deal would be reviewed independently.

The Reuters report stated that the two national mobile operators have already assembled special committees made up of independent board directors. The merger agreement is expected to be finalized in the next three weeks, and when that happens, the board committees will then deliberate if the merger deal will be signed. To make sure that the details of the merger agreement can be reviewed extensively, the committees have also acquired the services of financial advisers.

Another report published by The Wall Street Journal says that the deal will be all-stock, with Deutsche Telekom AG (the parent company of T-Mobile) to hold control over the new business entity as a result of the merger. John Legere, the current chief executive officer of T-Mobile, will head the combined company, while current Sprint chairman and SoftBank Mobile CEO, Masayoshi Son, will serve as co-chairman together with Deutsche Telekom CEO, Tim Höttges.

Interestingly, the Wall Street Journal report stated that the transaction will not involve any cash breakup fee. If US regulators do veto the proposed merger, T-Mobile is expected to offer Sprint a special roaming deal that would allow Sprint subscribers to connect to T-Mobile’s cellular towers, particularly in locations not covered by Sprint’s network.


Source: Tmo News

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16 comments:

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  1. Sprint and to a lesser extent T-Mobile can't survive long term on their own, your "feelings" won't change that.

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    1. Sprint and T-Mobile will do just fine on their own. They are both owned by two of the largest telecom companies in the world. The narrative that this merger "needs" to happen is all Wall Street pump and dump insiders.

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  2. T-Mobile can survive just fine on its own. And Sprint could merge with any other company. It doesn't have to be one of the few wireless carriers.

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  3. I'm excited about the merger. The combined company will offer better coverage, speed and will have the scale to compete effectively with A and V. I hope the deal is approved quickly.

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    1. A T-Mobile/Sprint merger will do nothing to improve coverage because both networks have nearly identical coverage footprints. T-Mobile is already the fastest network, merging with the slow, broken Sprint network won't do anything T-Mobile couldn't do on its own. And the merged T-Mobile/Sprint still won't be able to complete with AT&T and Verizon because 1) they still won't be able to match the big two on coverage and 2) will no longer be as competitive on price as they are today so there won't be much of a reason to choose the network with the worst coverage over the big two.

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    2. T-Mobile has significantly better coverage than Sprint now, and will make their network available to Sprint phones that can support it, right away. T-Mobile has deployed their spectrum very quickly; Sprint has huge amounts of Band 41 that they can't afford to deploy. So the combined network will have Band 71 across the whole US within 1-2 years, combined with far more spectrum for the best speed in all major markets than A or V. Band 41 is also ideal for 5G; the antennas on the tower can be much smaller. So Tmo-Sprint will have much better, faster coverage.

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    3. This map shows the combined Tmo-Sprint coverage would be better than Verizon's map.
      http://www.fiercewireless.com/wireless/t-mobile-sprint-merger-would-significantly-improve-ability-to-compete-rural-markets-mosaik

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  4. Sprint owns more spectrum than anyone besides the US government. They just need the money and will to build it.

    T-Mobile won't need the merger after building out their 600MHz network.

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    1. Sprint needs to merge with a company that isn't currently in the wireless industry, Dish comes to mind. And T-Mobile needs to keep doing what they do best, innovate and compete where AT&T and Verizon have shown they have no interest in competing.

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    2. Sprint talked to Dish. Dish isn't interested. What do you know that they don't?

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  5. This is not going to be good for competition.

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  6. Not sure what to believe anymore. Years ago everyone was complaining that we had to let Tmo/Sprint combine to combat T and VZ. Now everyone is saying the opposite, and that letting the two combine would help T/VZ by reducing one of their competitors. I guess there are pros/cons either way.

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    1. No one really knows. Is one strong competitor better than two relatively weak ones, especially since one weak one won't have the money to roll out 5G promptly and deploy the spectrum it owns? If #4 fails and is broken up, #3 would still be a relatively weak competitor to 1 and 2. Wouldn't be worse than allowing the merger? If they merge, will Legere dust off his old AT&T suit, get a haircut, stop wearing magenta capes and kill uncarrier moves? Some people say yes, others say hell, no.

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    2. Nobody puts Legere in a corner.

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  7. I'm dubious that this will result in significant improvement for the wireless consumer. The banks, financiers and attorneys will profit, however.

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  8. UPDATE: A new report from the Wall Street Journal also says that SoftBank wants to back out of the T-Mobile merger. Reuters says that SoftBank is concerned about losing control of the combined company. Meanwhile, a report from CNBC claims that while there are some struggles in the talks, SoftBank is not planning to back out of the deal.

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