If the potential of a T-Mobile/Sprint merger concerns you, it may be time to start turning the corner. Whether a deal actually happens remains to be seen, but both parties seem open to it. At CES, T-Mobile CEO John Legere commented that the T-Mobile way is here to stay, regardless of any merger. Now, he’s soft-selling it to us by touting the benefits of such a deal.
Legere recently made comments on Bloomberg West that seemed to signal his consolidation that the merger was likely. Rather than discuss the possibility, he was boasting of the benefits any deal between his company and Sprint wold bring to consumers. Rather than discuss customer service or plan benefits, he spoke of the one thing carriers covert more than any other: spectrum.
“If the government wants us to have a competitive environment, you are going to make sure that the duopoly doesn’t use their prowess to crush the little guys and have this sub-1 GHz spectrum be moved all to them” Legere said. He went on to add “We either need more spectrum and capability, a lot more investment, or we need consolidation”. That sounds a lot like a CEO relegating himself to leading a new charge, or at least understanding his company’s place int he big water they find themselves in.
Legere didn’t come right out and say a merger was likely, though. He said there were “multiple versions of consolidation in the industry that are possible ways for us to grow.” He went on to add “from a standpoint of companies consolidating to get better scale, I’m open to looking at options”, but he may not have the choice. Reports put T-Mobile parent company Deutsche Telekom and Sprint’s Softbank in direct talks about a buyout/merger. The FCC, however, has the last word — and they don’t look favorably on three big carriers.
Source: Bloomberg
If this merger happens, then I think it will be a game changer for the industry, in terms of price, quality, and unlimited data. I hope this happens.
Would T-Sprint then have enough coverage to outdo Verizon?
Good question, and I don’t know that anyone has tracked the spectrum holdings in their entirety. I’d say no, just because Verizon is so mammoth, but T-Mobile and Sprint would definitely be in a better position to claim spectrum via auction as a tandem.
Hopefully, they would convert over to GSM. Since GSM/LTE are standards for mobile networks (hence the name, Global Standard for Mobile), I would hope all of the spectrum they have would convert over to that.
That could help the combined carrier in many areas. Sprint is also rich in spectrum, and if they were all converted to a single network, it would certainly have the power to compete more directly with Verizon and AT&T.
Well said. If the merge happens, it would be the best in out wanting case to have it all go GSM but it feels unlikely to happen. All I cared is keeping my awesome price of unlimited everything. Plus I love the fact I can just swap out my SIM card in other GSM devices easy as 123
So what? They’re will always be a duopoly with only 3 carriers around. If a merger with Sprint helps topple the Verizon/AT&T duopoly, than the Verizon/Sprint duopoly, or the AT&T/Sprint duopoly will be born!
This is the Merger that makes the most sense and can’t be making Verizon very comfortable
int he big water = in the big water