Sprint, T-Mobile merger will generate 5G powerhouse, cut costs for users

Posted:
in iPhone edited June 2018
T-Mobile and Sprint claim that the "New T-Mobile" will bring 5G faster to the American people, and a host of other benefits to consumers.

T-Mobile's John Legere


Sprint and T-Mobile have formally filed their merger request with the US Federal Communications Commission, to form a combined company which will be called "New T-Mobile." Sprint and T-Mobile vow to spend $40 billion after the merger to "deliver a robust, nationwide world-class 5G network and services sooner than otherwise possible."

The merger, the parties say in their filing, is "necessary to accomplish a goal critical to enhancing consumer welfare in this country: the rapid and widespread deployment of 5G networks in a market structure that spurs rivals to invest in a huge increase in capacity, and, correspondingly, to drop tremendously the price of data per gigabyte."

The two companies also vow to "disrupt the wireless industry, and ensure U.S. leadership in the race to 5G," while also claiming that the speed of 5G will serve as an alternative to at-home broadband providers.

The filing goes on a bit about the history of wireless networks' development, especially in relation to the introduction of different iPhones as networks were upgraded 2G to 3G to 4G/LTE.

"The switch to 4G LTE produced a rapid acceleration of the virtuous cycle described by the FCC and transformed the mobile ecosystem," the companies write. "Consumers flocked to 4G LTE.81 Carriers offered attractive packages that enabled consumers to get the new 4G LTE handsets and a 4G LTE subscription. For example, in 2011 Verizon offered a promotion providing customers with "twice the data [for the] same low price" when they purchased a new 4G LTE smartphone and data plan."

The progress of 5G

5G, the next generation of wireless connection, is set to roll out later this year and early next. T-Mobile, on its own, has announced that it will roll out 5G in 30 cities by the end of 2018, while Sprint has said that its first six 5G cities are coming next year. Rival AT&T said that it will launch mobile 5G in three cities this year, with the transitional "5G Evolution" technology coming to more than 100 markets.

It's not expected that the iPhone models introduced this fall will be 5G-compatible.

We just took the next step in our merger with Sprint - a filing with the FCC sharing how the New T-Mobile will be good for consumers - including how we'll create more competition, innovation & job growth in the 5G era! Key info: https://t.co/Ioa23FUBQe https://t.co/EewogkAtFV

-- John Legere (@JohnLegere)

T-Mobile's history of mergers

T-Mobile's business chat support


Sprint and T-Mobile announced their plans to merge in April, in an all-stock deal worth $26 billion. "New T-Mobile" will be run by current T-Mobile CEO John Legere. The two companies had had discussions in 2017 that ended without a deal.

T-Mobile had reached a deal to be acquired by AT&T in 2011, but the Department of Justice blocked the deal later that year. The current merger would also need to be approved by the government, as well as foreign entities such as the EU.

The merger letter also vows that "T-Mobile and Sprint Are Merging to Beat Verizon and AT&T, Not to Be Like Them."
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Comments

  • Reply 1 of 45
    AppleishAppleish Posts: 81member
    First AT&T lost me to Verizon when they started punishing iPhone people with "unlimited" plans.

    Now Verizon is annoying me in many, many ways.

    So my iPhone Xs (or whatever they call it) might be giving them a chance...
    edited June 2018 airnerdrepressthis
  • Reply 2 of 45
    I could use some of this 5G today in NYC. I am on T-Mobile and my data has been crazy slow all day.
    cornchip
  • Reply 3 of 45
    eightzeroeightzero Posts: 2,228member
    I switched to T-Mobile fro being a AT&T customer for about 15 years. I am happy I did. Service is good, and i got a significant price drop with an increase to unlimited data. 

    I am skeptical about 5G being an alternative to at-home broadband. I've been generally happy with my comcast cable service at $50/mo. I would try an alternative for a price drop, but CenturyLink has no "try it before you buy it" option, along with bizarre bundling options that obfuscate the issue. If T-Mobile can deliver a local 5G connection of equivalent speed at a price break, great - I'll try it. But...skeptical.

    Edit: as to adding 5G to iPhone, it would be an inducement to upgrade from my iPhone 7 so I could try it. 

    While Legere seems to eschew the "puck" for home broadband, if someone (ahem apple) made a great one, they'd be on to something. Add a wifi router with a configurable VPN. It'd be way cool. 
    edited June 2018 repressthis
  • Reply 4 of 45
    nunzynunzy Posts: 662member
    I don't care about 5G. iPhone will get it when it is fully baked. Probably in 2 or 3 years.

    Until iPhone has 5G, it does exactly nothing.

  • Reply 5 of 45
    chasmchasm Posts: 1,100member
    It's probably a good time to assess how much combined data (home and cellular) you use in a month of typical use. There are some apps that can help you measure your home Wi-Fi/broadband use, and your provider should be able to tell you how much cellular data you use. Once you have that figure, double it to allow for future increases, and that's how much data a 5G plan would need to offer at a reasonable price for you to cut ties to your current home internet provider. The 5G technology is fast enough, but its all about how much traffic they'll allow. That when you'll know whether T-Mob is serious about this idea or not.
  • Reply 6 of 45
    emoelleremoeller Posts: 415member
    I'm rural and 5G will take years, if ever, to roll out rurally given its requirements for many smaller short distance/mesh style transmitters.   I don't expect an Apple 5G phone for a couple of years and even then I wouldn't buy it exclusively for 5G service.....
    dysamoriabb-15airnerdrepressthisargonautcornchip
  • Reply 7 of 45
    supadav03supadav03 Posts: 418member
    I’ve been a T-Mobile customer for the last 3 years and was with Sprint for 4 years before that. Prior to both I had AT&T for years & years. I think both providers have closed the gap on AT&T when it comes to coverage. Sprints speeds still leave a lot to be desired but hard to argue with thier prices. I think this will end up being good for everyone. 
    baconstangredgeminipaGeorgeBMacairnerdrepressthis
  • Reply 8 of 45
    eightzeroeightzero Posts: 2,228member
    chasm said:
    It's probably a good time to assess how much combined data (home and cellular) you use in a month of typical use. There are some apps that can help you measure your home Wi-Fi/broadband use, and your provider should be able to tell you how much cellular data you use. Once you have that figure, double it to allow for future increases, and that's how much data a 5G plan would need to offer at a reasonable price for you to cut ties to your current home internet provider. The 5G technology is fast enough, but its all about how much traffic they'll allow. That when you'll know whether T-Mob is serious about this idea or not.
    Good comment; concur. 

    I use orders of magnitude more data at home than mobile, and suspect that is true for most.

    I am skeptical the merger is good for consumers, and me in particular. But then, I remember paying a per-minute rate for long distance voice phone calls. 
    ronnbaconstangGeorgeBMacairnerdrepressthischasm
  • Reply 9 of 45
    foggyhillfoggyhill Posts: 4,767member

    That's a god damn hoot.

    I don't believe any of those stealing thieves.
    The get public airwave rights and act like we owe them for eternity with no redress.

    They're just deciding who gets what part of the pie and then make us eat it with the plate and charges us for it.

    All those companies make me sick.
    edited June 2018 tallest skilmuthuk_vanalingamentropysGeorgeBMacargonautcornchip
  • Reply 10 of 45
    dysamoriadysamoria Posts: 1,921member
    When has a merger ever been good for customers in the long term? Regardless of what they claim in the short term, once they've consumed a competitor, there is less incentive to charge anything less than the maximum they can get away with. Mergers always result in higher prices later.
    tallest skiltokyojimumuthuk_vanalingamavon b7seafoxrepressthisargonautcornchip
  • Reply 11 of 45
    Market consolidation is never good for consumers.

    It may be true 5G needs massive investments , but overall the industry would be better with at least 4 networks.
    tokyojimumuthuk_vanalingamrepressthiscornchip
  • Reply 12 of 45
    foggyhillfoggyhill Posts: 4,767member
    Telco equipment these days is way way cheaper than in the 3G rollout days and the towers and backhaul is mostly there, so they're all full of crap about this. Pure crap.

    Their bottom lines shows you how full of crap they are. They are easy money making machine; the money comes in even if most time service is pathetic.
    cornchip
  • Reply 13 of 45
    After being with Cingular/AT&T for over 15yrs, I switch to Sprint for a better price and been happy with the switch. I just hope the merger truly keep the price down!
    baconstangrepressthis
  • Reply 14 of 45
    rob53rob53 Posts: 1,976member
    Market consolidation is never good for consumers.

    It may be true 5G needs massive investments , but overall the industry would be better with at least 4 networks.
    Disagree. I currently have Verizon but it upsets me when I pass a cell tower and don’t get a stronger signal. Without calling me a socialist, I’d rather see a single, multi-frequency cellular system with fast and total coverage over the entire US. No dead spots for anyone. Why do we need competition? To make stock holders richer? Same with broadband. The original network was paid with taxpayers money then taken over by corporate greed. Competition isn’t creating better technology because patent trolls are stopping it. Whoever owns 5G will make everyone else suffer. 
    tokyojimuGeorgeBMacrepressthis
  • Reply 15 of 45
    It's ironic how Sprint was the one who started the complaint which led to the DOJ denying AT&T the right to merge with T-Mobile and here we are 7 years later they want to do it. 

    It's not going to be easy since they use different technologies. 
    SpamSandwichrepressthis
  • Reply 16 of 45
    SpamSandwichSpamSandwich Posts: 30,581member
    Even if you don't like T-Mobile or Sprint you gotta love John Legere's chutzpah.
    spinnydtshapiretrogustombenz1962redgeminipaGeorgeBMacrepressthiscornchip
  • Reply 17 of 45
    Appleish said:
    First AT&T lost me to Verizon when they started punishing iPhone people with "unlimited" plans.

    Now Verizon is annoying me in many, many ways.

    So my iPhone Xs (or whatever they call it) might be giving them a chance...
    I hear you Appleish...I'm currently with Ting (sort of pay-as-you-go at $31/mo). Using a "Sprint" refurbished SE ($199), Rose Gold b/c it matches my Rose Gold 2017 MacBook.

    Seriously considering the next iPhone Xs with T-Mobile/Sprint. Should be some great deals, hopefully. Really detest ATT and Verizon. :)

    Best 

    P.S. I was surprised by the weight of the X compared to the SE which is super light. :)
    edited June 2018
  • Reply 18 of 45
    rob53 said:
    Market consolidation is never good for consumers.

    It may be true 5G needs massive investments , but overall the industry would be better with at least 4 networks.
    Disagree. I currently have Verizon but it upsets me when I pass a cell tower and don’t get a stronger signal. Without calling me a socialist, I’d rather see a single, multi-frequency cellular system with fast and total coverage over the entire US. No dead spots for anyone. Why do we need competition? To make stock holders richer? Same with broadband. The original network was paid with taxpayers money then taken over by corporate greed. Competition isn’t creating better technology because patent trolls are stopping it. Whoever owns 5G will make everyone else suffer. 
    Funny you say that. In countries with ‘government subsidized’ networks or ‘gov owned’ networks ,they usually have the worst coverage & support.
  • Reply 19 of 45
    rob53rob53 Posts: 1,976member
    rob53 said:
    Market consolidation is never good for consumers.

    It may be true 5G needs massive investments , but overall the industry would be better with at least 4 networks.
    Disagree. I currently have Verizon but it upsets me when I pass a cell tower and don’t get a stronger signal. Without calling me a socialist, I’d rather see a single, multi-frequency cellular system with fast and total coverage over the entire US. No dead spots for anyone. Why do we need competition? To make stock holders richer? Same with broadband. The original network was paid with taxpayers money then taken over by corporate greed. Competition isn’t creating better technology because patent trolls are stopping it. Whoever owns 5G will make everyone else suffer. 
    Funny you say that. In countries with ‘government subsidized’ networks or ‘gov owned’ networks ,they usually have the worst coverage & support.
    They aren’t the US with lots of money to waste/spend on all sorts of things. The New T-Mobile is planning on spending $40B on supposed upgrades. Would this be enough to satisfy all US phones? If so, then why have 3 other companies spend the same amount to duplicate the same cellular network to shown competition? Cellular service is a utility, same with high speed internet. (I’m talking about actual high speed, >200Mbps, not the 10Mbps “high speed” many providers offer. 
    repressthis
  • Reply 20 of 45
    tallest skiltallest skil Posts: 43,399member
    rob53 said:
    The New T-Mobile is planning on spending $40B on supposed upgrades.
    Ha. Only 100 million at best. Even commie HuffPo knows that telecoms won’t ever pay a damn thing.
    edited June 2018 SpamSandwichcornchip
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