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T-Mobile and Sprint have announced a merger after years of talks trying to forge a deal. The new company will be called T-Mobile, and have over 100 million customers. And the new company is promising to spearhead the nationwide rollout of a 5G network.
There have been rumors for years that T-Mobile and Sprint would be merging together. And in November 2017 it looked like it was happening. However, the deal fell apart as the two companies were unable to reach a consensus over the terms of the deal.
The New T-Mobile Sprints Into the Future
On Sunday, the deadlock was broken, with the companies agreeing to merge in an all-stock transaction. The new company, called T-Mobile, will be headquartered in Washington. John Legere of T-Mobile will be CEO, with Mike Siever of Sprint President and COO.
The companies claim this is all positive. T-Mobile and Sprint maintain that combining forces gives them “the network capacity to rapidly create a nationwide 5G network” and “light up a broad and deep 5G network faster than either company could separately”.
In its press release, the two companies adopted a patriotic tone, saying the merger will fuel “American innovation and entrepreneurship,” and help “America and American companies lead in the 5G era”. However, both companies have international entities as shareholders.
Legere said, “As industry lines blur and we enter the 5G era, consumers and businesses need a company with the disruptive culture and capabilities to force positive change on their behalf.” And according to Legere, that company is the new T-Mobile.
Is This the End of User-Friendly Offerings?
Although the companies have now agreed terms, the merger still needs to be approved by regulators and shareholders. If finalized, the new T-Mobile will be closer in size to Verizon and AT&T, the two biggest carriers in the United States.
Growing in size and stature could cause problems for customers though. As smaller companies, both T-Mobile and Sprint had to work hard to win people over. As one giant entity there’s a danger any and all user-friendly offerings will come to an end.