The Inevitable Merger is Almost Here for Sprint and T-Mobile

What has been speculated for months is on the cusp of becoming a reality. With negotiations reaching a fever pitch, Sprint is expected to pay $32 billion to acquire T-Mobile and essentially shifting the carrier playing field. This agreement would merge the 3rd and 4th largest wireless carriers in the U.S and essentially create a power threesome in the carrier food chain. During all these rumors, participants in the agreement have not been too secretive about how a merger would be beneficial for both companies. SoftBank CEO Masayoshi Son has stated how a merger will pose a greater threat to Verizon and AT&T that have led the carrier race by far. Meanwhile, Deutsche Telekom CEO Timotheus Hoettges has also reveled in the idea of producing a "super maverick" in the telecom industry. The merger would suddenly put the companies into the thick of the competition. Based on numbers from the past 3 fiscal Quarters, the combined subscriber base would be right in between Verizon and AT&T’s totals. While their service revenue would still be behind, the combined totals would close the distant gap that currently exists. Finally, postpaid subscribers from the combined totals would actually place them ahead of AT&T and Verizon. The AWS that T-Mobile presently has for LTE in conjunction with the rollout of BRS on Sprints LTE could easily put some serious pressure on AT&T and Verizon. While there is anxious anticipation of the deal, there will undoubtedly be some opposition to the merger from mobile regulators. However, Sprint must feel pretty confident that regulators would allow the merger to pass since they will owe T-Mobile about $1 billion if the deal falls through. Sprint and T-Mobile will likely argue to regulators that joining forces is a necessary path to remaining competitive. At this point, there’s no arguing against that as neither carrier has struck much fear into AT&T and Verizon over the past few years. But that could all change soon enough. "If you took T-Mobile and gave it a huge amount of spectrum and the economic wherewithal and the scale to take on what we're doing, if I was AT&T or Verizon, I would be worried” said John Legere, CEO of T-Mobile. In all likelihood, an official announcement should be headed our way in July. Although the picture is starting to become clearer, we all anxiously await the official announcement that will change the landscape of mobile carriers. Launch 3 Telecom can provide equipment used by current network providers such as Verizon, AT&T, T-Mobile, and Sprint. If you are interested in Antennas, RET Cables, or other equipment used in a cell tower build, contact Launch 3 Telecom at 877-878-9134 or email sales@launch3.net.
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