Wireless Carriers
Sprint and T-Mobile Call Off Merger Talks
The two will have to go toe-to-toe against AT&T and Verizon by themselves, as the idea of a more competitive mega-carrier is off (again).
https://www.pcmag.com/news/sprint-and-t-mobile-call-off-merger-talks
It's official: Sprint and T-Mobile have called off talks about a potential merger following months of negotiations that, at one point, likely had investors fairly excited about the potential of a huge new rival to AT&T, the nation's second-largest carrier.
The two companies issued a joint statement Saturday to announce their big breakup.
T-Mobile President and CEO John Legere's side: "The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile's shareholders compared to our outstanding stand-alone performance and track record.
"Going forward, T-Mobile will continue disrupting this industry and bringing our proven Un-carrier strategy to more customers and new categories – ultimately redefining the mobile Internet as we know it. We've been out-growing this industry for the last 15 quarters, delivering outstanding value for shareholders, and driving significant change across wireless. We won't stop now."
Sprint President and CEO Marcelo Claure's side: "While we couldn't reach an agreement to combine our companies, we certainly recognize the benefits of scale through a potential combination. However, we have agreed that it is best to move forward on our own. We know we have significant assets, including our rich spectrum holdings, and are accelerating significant investments in our network to ensure our continued growth.
"As convergence in the connectivity marketplace continues, we believe significant opportunities exist to establish strong partnerships across multiple industries. We are determined to continue our efforts to change the wireless industry and compete fiercely. We look forward to continuing to take the fight to the duopoly and newly emerging competitors."
Had Sprint and T-Mobile successfully combined forces, the resulting carrier—whatever the name may have been—would have had more than 130 million US subscribers. That would have given it a strong foothold against top-dog Verizon, at just around 150 million subscribers, and AT&T, at approximately 140 million.
Here's What a Sprint/T-Mobile Network Would Look Like
Eyes now turn to Sprint, the nation's fourth-largest carrier at approximately 50 million subscribers. According to Reuters, industry analysts are concerned that the carrier's growth—driven by heavy discounting—just isn't going to keep the carrier competitive in a Verizon- and AT&T-dominated market. Worse, Sprint owner SoftBank appears to be running low on options to deal with the considerable amount of debt Sprint carries.
Even if the two companies had worked out their differences, there was also no guarantee that a proposed merger would pass US regulatory scrutiny—one of the reasons Sprint called off merger talks with T-Mobile years ago—although GOP administrations are generally more favorable to these types of deals than Democratic ones.
The Best Wireless Chargers for Your Android or iPhone in 2022
By Steven Winkelman
The Best MagSafe Chargers for 2022
About David Murphy
David Murphy got his first real taste of technology journalism when he arrived at PC Magazine as an intern in 2005. A three-month gig turned to six months, six months turned to occasional freelance assignments, and he later rejoined his tech-loving, mostly New York-based friends as one of PCMag.com's news contributors. For more tech tidbits from David Murphy, follow him on Facebook or Twitter (@thedavidmurphy).
Read the latest from David Murphy
Short Film Based on 'Papers, Please' Now Free for Streaming
Rumor: Apple Pondering Premium Branded Headphones
OnePlus' Fix for HD Streaming: Send In Your Smartphone
Google Employee Sells iMac, Can See its Location 3 Years Later
Pixel Owners Report Battery Life, Overheating Problems
More from David Murphy