Sprint & SoftBank in 'preliminary conversations' about T-Mobile merger
Sprint and its controlling investor -- Japan's SoftBank -- are reportedly in "preliminary conversations" about a merger with T-Mobile U.S., a move that could narrow carrier choices for Apple's U.S. iPhone buyers.
Executives with Sprint and SoftBank have been in informal talks with T-Mobile owner Deutsche Telekom, according to anonymous Bloomberg sources. SoftBank chairman Masayoshi Son and Deutsche Telekom CEO Tim Hoettges have meanwhile told investors they're open to the merger idea.
Financial firms are already competing to participate if and when a deal is agreed on, the sources added.
Sprint previously expressed interest in buying T-Mobile back in 2014, but that deal ultimately fell apart because of expected regulatory obstacles. The Federal Communications Commission then barred telecom mergers over over a year while it conducted a $19.8 billion wireless spectrum auction -- that period ended on April 27.
Rumors of a possible merger arose in February this year, given a corporate-friendly Republican government and SoftBank's apparent willingness to surrender control of Sprint -- something that might further appease regulators and the nationalist-leaning Trump administration. SoftBank's Son has been publicly praised by President Trump for bringing jobs to the U.S.
A merger is expected instead of an acquisition for the simple reason that since 2014, T-Mobile's market valuation has surged to $55 billion, actually $23 billion more than Sprint's. At the same time, both companies are still in the shadow of the two leading U.S. carriers, AT&T and Verizon.
Executives with Sprint and SoftBank have been in informal talks with T-Mobile owner Deutsche Telekom, according to anonymous Bloomberg sources. SoftBank chairman Masayoshi Son and Deutsche Telekom CEO Tim Hoettges have meanwhile told investors they're open to the merger idea.
Financial firms are already competing to participate if and when a deal is agreed on, the sources added.
Sprint previously expressed interest in buying T-Mobile back in 2014, but that deal ultimately fell apart because of expected regulatory obstacles. The Federal Communications Commission then barred telecom mergers over over a year while it conducted a $19.8 billion wireless spectrum auction -- that period ended on April 27.
Rumors of a possible merger arose in February this year, given a corporate-friendly Republican government and SoftBank's apparent willingness to surrender control of Sprint -- something that might further appease regulators and the nationalist-leaning Trump administration. SoftBank's Son has been publicly praised by President Trump for bringing jobs to the U.S.
A merger is expected instead of an acquisition for the simple reason that since 2014, T-Mobile's market valuation has surged to $55 billion, actually $23 billion more than Sprint's. At the same time, both companies are still in the shadow of the two leading U.S. carriers, AT&T and Verizon.
Comments
What really sucks is that the people who could prevent such a merger couldn't care less about the American consumer. We are lower than used toilet paper on their scale of concern. There is absolutely nothing that can stop this.
Perhaps Sog could tell it better, I've got a similar plan with T-Mobile - unlimited voice and texting in the US. Might include Canada and Mexico but I am not sure. Also: free texting and data in many countries around the world - I took advantage of this in Great Britain and Japan. I just can't tell you enough how great it is to have texting and data when traveling with family and not worry about crazy fees like with AT&T or Verizon.
So, I switched to Consumer Cellular and, not only got a better plan, but my monthly bill dropped $30 to $52/month. And, the weird part is: My Consumer Cellular plan uses the AT&T network, so I get the exact same service as before!
Correction: While it was a similar plan, I did not have an unlimited plan. I paid $10/Gb for overages
I really dislike Sprint, a lot, but in the current market it makes me nervous to lose the distinction between them and T-Mobile. Any disappearance of competition right now could set the stage for a return to not so long ago. If T-Mobile no longer feels the pressure to compete so heavily after a merger with Sprint, who's to say higher prices for less offerings won't return?
Further, I really like T-Mobile. It pains me to think about any kind of association with Sprint.
At T-Mob, 2 lines of unlimited data, talk, text for $100. Plus two $150 gift cards for adding two lines. The customer service and portal is either better or on par with AT&T.
Even with mergers, one company controls the new entity. The ideas of a merger of equals is a fallacy. T-Mobile seems more likely to prevail, but it all depends on the deal they make.