Home News Third Time’s a Charm? Sprint and T-Mobile Resume Merger Talks

Third Time’s a Charm? Sprint and T-Mobile Resume Merger Talks

written by Dominic Gomez April 13, 2018
Sprint and T-mobile logo's with a heart in the middle

In a seemingly never-ending story, it seems that Sprint and T-Mobile have once again resumed talks of a merger. If you remember, years ago everything was in place but the actual finalization would have been blocked by anti-trust regulators. Then, I believe it was last year (2017), Sprint actually called off negotiations because they didn’t want to concede control to Magenta. This was a move I personally thought was, we’ll just say, not very smart.

Let’s Look at the Numbers

It’s no secret Sprint isn’t exactly blowing the roof off of their subscriber base. T-Mobile, on the other hand, has been very steadily growing theirs. Back in 2015, T-Mobile actually took the number 3 spot for largest US wireless carriers from Sprint and haven’t really let go since. As a matter of fact, the spread is actually increasing. Per Fierce Wireless, the 4th Quarter customer base for John Legere and Co. was about 72 million, while Sprint was sitting at just about 53 million. When T-Mobile took 3rd place from Sprint back in 2015, Sprint had about 57.7 million subscribers. Think about that. Sprint has roughly the lowest monthly fees, yet they have lost about 4 million subscribers in 3 years.

Win-Win?

If Sprint can see the light, this could be a win-win for both parties. Sprint, with better leadership, could actually start gaining subscribers again. A merger would still leave that Sprint/T-Mobile conglomerate in 3rd place. However, it would put them about 15 million subscribers behind AT&T. With the way it seems T-Mobile is adding subscribers, it could make for a pretty good shakeup for the top 2. Let’s not forget T-Mobile is working on revolutionizing TV. If that takes off the way I think it will, it could add quite a few people to their subscriber base.

I’m Not Bashing Sprint

It may feel like I’m dissing Sprint and I’m honestly not trying to. I am actually a current Sprint customer. Full disclosure though, I wanted to go with T-Mobile but Sprint had the better deal on their phones. Don’t get me wrong, Sprint is actually pretty good if you stay within their coverage area. Don’t get me wrong, they could also do a lot better as far as coverage goes.

Speaking of coverage, I’m actually curious to see how that is handled. Sprint is a CDMA network, while T-Mobile is a GSM network. On the surface, those two technologies don’t mesh well together. Would Sprint be migrated over to GSM? It definitely wouldn’t make much sense to move T-Mobile to CDMA, as they are the bigger company.

Will Sprint and T-Mobile Finally Join Forces?

What do you think about this whole thing? Will a merger between the two finally happen? Or do you think talks will fall through again like the previous times? Let us know in the comments!


Source :

WSJ

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