Report: Sprint & T-Mobile Will Announce a Merger Next Week





people looking at phones

Today it was reported that Sprint & T-Mobile will officially announce a $26 billion dollar merger next week. This all comes from CNBC who says their sources say the deal could be announced as soon as Sunday.

According to reports Sprint and T-Mobile are both hoping that a merger will help them cover the cost of upgrades to their networks. With 5G around the corner, both T-Mobile and Sprint are looking at major costs and efforts to upgrade their networks.

There is also new competition for subscribers from services such as Straight Talk and Google that is putting pressure on services like Sprint and T-Mobile. Things are different today than even just a few years ago.

One of the main issues has been that Deutsche Telekom owns 63% of T-Mobile. According to reports, Deutsche Telekom is unwilling to give up control. If any merger happens Deutsche Telekom wants to retain control over the new company. Now it looks like they have worked through that speed bump.

A merger of this size will face tough scrutiny especially from the Department of Justice.

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