For some time now talks between T-Mobile and Sprint for a possible merger have been going on. In the past, the deal fell apart over a long list of issues but now in the face of new competition, it looks like the deal is back on.
According to a report from Reuters T-Mobile and Sprint plan to merge without selling off any assets in an effort to keep their synergies intact. The main goal seems to be an effort to hold on to their spectrum holdings in an effort to create the best possible network.
This effort by T-Mobile’s and Sprint’s to keep their spectrum will likely create challenging negotiations with U.S. antitrust and telecommunications regulators. Yet the recent increase in wireless companies from Wallmarts Straight Talk network to a new effort by Comcast to get more into the wireless market will likely help T-Mobile and Sprint argue that there is adequate competition in the market.
T-Mobile and Sprint are preparing a negotiating strategy to tackle demands from regulators regarding asset sales, including the divestment of some of their spectrum licenses after their deal are announced, the sources told Reuters.
On top of current offerings from players like Wallmart and Comcast new competition from new players like Google, Dish, Charter, and more are on the horizons. A growing list of companies plan to jump into the wireless 5G spectrum with plans to shake up both home internet and the cellphone market. This new competition and with 5G on the horizon it seems like the time is right for a merger between T-Mobile and Sprint.
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