T-Mobile and Sprint merger to rival AT&T and Verizon Communications

By Pouyan Broukhim

According to Reuters, T-Mobile US Inc. and Sprint Corp. are planning to merge, something that will create a network to rival the top two wireless telecommunications companies; Verizon and AT&T.

T-Mobile and Sprint currently have the third and fourth most wireless network subscribers in the US, both some way behind the leading two firms.

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However, a potential merger would see the creation of a network with approximately 131mn subscribers. This is up on the figures recorded in Q2 2017, showing Sprint to then have 53.7mn subscribers, whilst T-Mobile had 69.6mn subscribers.

This combined network would be much more ably positioned to challenge AT&T’s market share of 136.5mn network users and Verizon’s 143.6mn.

A potential merger is also likely to see a greater emphasis on the advancement of 5G wireless technology, something that will require considerable investment to get up and running.

The firms are reportedly preparing their negotiation strategy that will be used to satisfy the demands of the appropriate regulatory authorities.

If proceeded with, the announcement is expected to come in late October or early November.

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