Sources: T-Mobile/Sprint merger is “dead”

May 2, 2014
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Worried about Sprint and T-Mobile merging? Sources tell the New York Post you shouldn’t be. According to them, the deal is “dead”. The FCC, who are outspoken about wanting four major US carriers, are said to be dead set against the merger.


These sources hint the FCC’s dismay with the deal may circulate around the initial story itself. The Wall Street Journal broke the merger news originally, which FCC Chairman Tom Wheeler believes was planted by Sprint. Sprint was set to meet with the FCC that morning about the proposed merger, and Wheeler believes they planted the story ahead of the meeting, likely to curry public favor.

Even more telling is that Sprint’s CEO and CFO left respective meetings separately before taking questions on the proposed merger. If Sprint believed a merger was eminent, likely, or even possible — their head honchos would likely have fielded questions about the issue.

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If the deal doesn’t go through, it keeps Verizon and AT&T in a powerful position. The smaller carriers argue that AT&T and Verizon have the ability to purchase more spectrum, increasing the divide. The FCC has new rules in place to even the playing field a bit, but they are tenuous at best. Smaller carriers have spectrum set aside for them, but it’s a small amount.

A Sprint/T-Mobile merger would assist with their purchase power, but likely leave a sour taste in the mouths of consumers. We’ll wait to see how this develops, but for now — the merger seems DOA.

We’re curious on your take. Were/are you happy about a merger, or do you prefer your carriers separate? Given the risks/rewards associated, what’s your take on it all? Sound off in our comments section below!

Source: The New York Post


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  • lion7718

    Good

  • phor11

    So are they going to favor Sprint and T-mobile in the upcoming 600mhz spectrum auction in order to attempt to create 4 major carriers?
    Right now we have 2 major and 2 minor carriers.

    • http://www.androidauthoirty.com/ Nate Swanner

      To his credit, Softbank’s President was planning to start a massive pricing war if the deal went through. That alone could have had a strong ripple effect.
      The FCC rules set aside about 20% of spectrum per market for smaller carriers, but you’re setting aside a small block for small carriers… not good enough.

      • DrE

        Why can’t he start a massive price war without the merger?

  • http://silverfang77.tumblr.com/ Silver Fang

    I hope Sprint can get some of that 600 MHz spectrum. Their LTE coverage in my area is abysmal.

  • Randy Sherwood

    I left Sprint for T-Mobile. Sprint is the carrier of failed plans and broken promises, and I want nothing to do with them ever again.

    • Mike B

      2nd that. i got the M8 on launch day and about 15 days after the so called “spark network” began to randomly drop signals and they refused to work with me in any way or swap the phone for a different one.

    • http://www.facebook.com/profile.php?id=100003386080045 John doe

      Agreed. on the other hand, If Tmobile was making a move for Sprint id be for it.

      • Randy Sherwood

        Rumors are suggesting John Legere would be the CEO of the combined company… which *could* make it bearable. But if any of Sprint’s management are retained, I’d be skeptical.

      • http://www.facebook.com/profile.php?id=100003386080045 John doe

        agreed

  • Lan

    Mixed feeling about. If Sprint and T-Mobile merged and they keep T-Mobile’s path they could easily start chipping away at Verizon and AT&T. Sprint has the spectrum and the voice coverage and combine that with T-Mobile it could be beautiful network. Sprint has potential but fails to act on it.

  • pjcamp

    Imminent.

  • Woogy Lewis

    I also left Sprint for T-Mobile, and would leave again if they acquired T-Mobile. The merger with AT&T made much more sense.