uploads///Telecom Q Postpaid Phone Net Additions

Why Sprint Believes It Has Plenty of Merger and Acquisition Options

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Sep. 27 2017, Published 1:57 p.m. ET

The rise in M&A activity

There has been a rise in M&A (mergers and acquisitions) activity in the telecommunications or telecom industry. There’s even been recurring talk of a merger between T-Mobile (TMUS) and Sprint (S). Sprint’s management had previously indicated that it had had numerous discussions with multiple partners and that it has “variety of options.”

During the Goldman Sachs Communacopia Conference on September 14, 2017, Sprint CEO (chief executive officer) Marcelo Claure was asked about Sprint’s M&A opportunities, but Claure didn’t provide any update.

While Claure’s closing remarks suggest that it’s still considering options, the carrier believes that the improvement in its fundamentals over the past three years provides it with the flexibility to be patient.

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History of the T-Mobile-Sprint deal

Sprint tried its luck merging with T-Mobile under the Obama administration. However, regulating authorities made clear at that time that they would not entertain such a consolidation. After that, both Sprint and T-Mobile took different roads, expanding their individual subscriber bases.

However, both carriers still have a common ambition in striving to get closer to market leaders AT&T (T) and Verizon Communications (VZ). In calendar 2Q17, Sprint and T-Mobile gained 88,000 and 786,000 postpaid phone net customers, respectively.

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