T-Mobile, Sprint to Finalize Merger
SAN JUAN — Wireless communications providers T-Mobile US Inc. and Sprint announced Tuesday that after receiving a favorable decision in federal court in New York the companies are taking final steps to complete their merger to create the New T-Mobile.
Washington-based T-Mobile US provides services through its subsidiaries and operates T-Mobile and Metro by T-Mobile, while no-contract brands such as Virgin Mobile USA, Boost Mobile and Assurance Wireless run on Sprint’s network.
“T-Mobile has redefined itself over the past decade as a maverick that has spurred the two largest players in its industry to make numerous pro-consumer changes,” the court stated. “The proposed merger would allow the merged company to continue T-Mobile’s undeniably successful business strategy for the foreseeable future.”
In a release, T-Mobile CEO John Legere said: “The broad and deep 5G network that only our combined companies will be able to bring to life is going to change wireless … and beyond. Look out Dumb and Dumber and Big Cable – we are coming for you … and you haven’t seen anything yet!”
The “long-awaited merger and all the goodness it will deliver” could be brought “to a close as early as April 1…,” said the company’s COO and president.
Sprint Executive Chairman Marcelo Claure added: “Today brings us a big step closer to creating a combined company that will provide nationwide 5G, lower costs, and a high-performing network that will invigorate competition to the benefit of all mobile wireless and in-home broadband consumers. With the support of federal regulators and now this Court, we will focus on quickly completing the few remaining necessary steps to close this transaction. I am proud of my Sprint team’s dedication, passion and resilience throughout the merger review process, and we are ready to make the vision of a New T-Mobile a reality.”
According to the company, the benefits of the New T-Mobile include:
- The U.S.’s first “transformational nationwide” 5G network and services with “speeds up to 5x faster than current LTE in just a few years and reaching as much as 15x faster by 2024….”
- “New T-Mobile’s plans to deploy a higher quality and more robust network for rural America and to prioritize more vulnerable urban populations will ensure that all Americans have a meaningful chance to thrive in the 5G economy.”
- “New T-Mobile is committed to delivering the same or better rate plans at the same or better prices for three years – and that includes 5G. With 14X more total capacity in 2024 than standalone T-Mobile has today, the New T-Mobile’s 5G network will bring down the cost of delivering a gigabyte of data, providing enormous economic incentives for the New T-Mobile to lower prices. New T-Mobile will vigorously compete for consumers at all price points and all customers, including prepaid and Lifeline, will have access to the same amazing 5G network and services.”
- New T-Mobile’s wireless in-home broadband service “will overcome the obstacles to extending traditional wireline access by blanketing high-capacity coverage over previously difficult to serve areas. It will deliver 100+ Mbps speeds for wireless broadband to 90% of the population and in-home service to over half the country’s households by 2024.”
- “In year one, New T-Mobile will have more than 3,500 additional full-time U.S. employees than the standalone companies would have had, and 11,000 more people by 2024. Additionally, plans to build more than 600 new retail locations and five new customer experience centers will create approximately 12,000 more jobs – many in small towns.”