The merger of T-Mobile and Sprint, the third and fourth largest carriers in the U.S., has been close to happening for several years, and the time has finally come. The mobile carriers submitted a formal application to the Federal Communications Commission on June 18, officially beginning the regulatory review process for the $26 billion deal.
In April, T-Mobile CEO John Legere took to Twitter to officially announce the merger, saying the two companies “have reached an agreement.” He posted a video alongside Sprint CEO Marcelo Claure giving some details on the merger.
The combined company will have more than 126 million customers, seeing it close in on rivals AT&T with 141 million subscribers and Verizon with 150 million. The merger could also mean an improvement in overall 5G wireless technology, which promises greater, pervasive connectivity and faster speeds, but which involves costly and complicated development efforts.
We’ve got all the news and rumors to keep you up to date.
FCC NEEDS “EXTRA TIME” TO REVIEW THE T-MOBILE/SPRINT MERGER
On September 11, the FCC announced that it needed more time to review the proposed merger between T-Mobile and Sprint. In the announcement, it paused the 180-day timeline for reviewing the merger, creating yet another roadblock in what could be a long process for the deal.
The FCC didn’t give too many details as to why it needed more time, but it did say that it wanted more time to allow for “thorough staff and third-party review.”
FCC BEGINS ACCEPTING PETITIONS TO DENY THE T-MOBILE AND SPRINT MERGER
On July 19, the commission announced that it is officially accepting petitions to deny the merger between T-Mobile and Sprint. Both petitions (that can be filed by anyone) to deny the deal and formal comments are due on August 27, and can be submitted on the FCC’s docket page — you can also find a list of filings from others. From there, oppositions to the petitions will be due on September 17 and replies are due on October 19. As for when a decision will be issued, the FCC has created a 180-day timeline to review the merger but aren’t required to give an answer once those days are up. In fact, now that it has paused that timeline, it’s unclear as to when we’ll hear a final decision.
T-MOBILE AND SPRINT FILE PUBLIC INTEREST STATEMENT WITH FCC
On Tuesday, June 19, both T-Mobile and Sprint announced the next steps have been taken in attempting to make the merger a reality — by filing its Public Interest Statement with the FCC. The PIS includes a variety of arguments by both Sprint and T-Mobile as to why the merger should be approved — starting with building a “world-class nationwide 5G network” that will surpass Verizon and AT&T.
The PIS also ensures the “New T-Mobile” will not only bring rural Americans better broadband coverage with improved signal quality and increased network capacity, but that consumers will also pay less and receive more. According to both carriers, customers could see a 55 percent decrease per gigabyte and 120 percent increase in cellular data supply.
Other arguments T-Mobile and Sprint include in the filing are ones made previously when the merger was first announced — job growth and innovation. By merging both companies, the New T-Mobile is said to create thousands of additional job opportunities. With a 5G network, the new carrier could help to fund and develop products or services that bring competition to what is already out there in the consumer market.
ANNOUNCING THE MERGER
On Sunday, June 17, T-Mobile CEO John Legere tweeted a video announcing that Sprint and T-Mobile had agreed to form a new company. In a press release from the same day, the combined companies were given a value of $146 billion. The company’s ownership will be split three ways, with Deutsche Telekom owning 42 percent and SoftBank Group holding 27 percent. The remaining 31 percent will be publicly owned.
The new company will be named T-Mobile, and Legere will serve as the chief executive officer. Sprint CEO Marcelo Claure and SoftBank Group Chairman and CEO Masayoshi Son will serve on the board of the new company.
Before the deal can be finalized, it will have to be approved by the Justice Department, which will review it for antitrust violations. In June Reuters reported the Justice Department was interviewing smaller carriers and MVNOs to determine how the T-Mobile/Sprint merger could affect their businesses.
While the Justice Department blocked a similar deal between AT&T and T-Mobile on antitrust grounds, Legere appears confident this merger will be approved
“This isn’t a case of going from 4 to 3 wireless companies — there are now at least 7 or 8 big competitors in this converging market,” Legere said. “And in 5G, we’ll go from 0 to 1. Only the New T-Mobile will have the capacity to deliver real, nationwide 5G. We’re confident that, once regulators see the compelling benefits, they’ll agree this is the right move at the right time for consumers and the country.”
One of those “compelling benefits” is likely to be job growth. The new company promises to employ at least 200,000 people in the U.S. That number is expected to grow as the “New T-Mobile” — as the company is called in the press release — has pledged to invest $40 billion in infrastructure over the course of three years.
The other major promise is that 5G is coming for all. The New T-Mobile says it will be the only wireless provider with the capability to provide true 5G service. This, in theory, will force its competitors to invest in new technologies prompting the further spread of 5G…..Read More>>>