Goodbye T-Mobile, Hello Merger — Good Thing or Disaster?

Goodbye T-Mobile, Hello Merger -- Good Thing or Disaster?
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The country’s wireless carrier industry is in for a major stir, as reports confirm that a merger between Sprint and T-Mobile looks like quite the possibility.

Currently, the market is dominated by AT&T and Verizon, while T-Mobile and Sprint rank 3rd and 4th respectively. However, since the prospect of the merger came into play, the stock prices of both the companies have risen.

T-Mobile shares rose 1.3% to $67.22 and Sprint shares saw a rise by 1.1% to $8.16. This is indicative of the benefits that the merger could cause to both the companies.

Earlier this month, a Bloomberg report indicated that Sprint CEO Marcelo Claure had traveled to Washington to lay the groundwork for the merger.

T-Mobile CEO Braxton Carter in reference to the merger said,” There is a very significant value-creation opportunity. It’s not rocket science. We need to buckle down and see if there is a way to check all the boxes and, if there is, we’ll be very interested in turbo-charging. But there has to be significant incremental value creation. If that isn’t there upon doing due diligence, if you can’t get past some large issues, we’re still in a great position with a stand-alone path.”

Sprint CEO Marcelo Claure said a combination of the two would create “a turbocharged maverick that would approach current leaders AT&T and Verizon in scale at JPMorgan’s telecom, media and technology conference.”

This merger seems to be a win-win situation both for the companies as well as for customers. Inter-company price wars have made available to customers great deals on calls and services. The T-Mobile and Sprint merger also promises a great outcome for the customers as this will initiate yet another great war among the top wireless carrier companies.

Deutsch Telekom (T-Mobile’s holding company) and SoftBank (Sprint’s holding company) had engaged in similar talks during mid-2014 but they had to shelf the idea of a merger due to regulatory conflicts. However, both the companies did see a rise in the share prices after President Donald Trump won the elections.

Megha Shah for TechFunnel.com


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Megha Shah
Megha Shah
A dreamer, traveler, aspiring entrepreneur and a bookworm beyond repair, Megha Shah is extremely fond of writing and has been doing so since she was a child. Apart from being a part-time writer, Megha is currently in college, pursuing B. Com. (Hons). Megha is an ardent follower of ‘Hardship, Hustle and Heart’ and firmly believes in the power of hard work and destiny!

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