How T-Mobile Is Going out of Its Way to Save Sprint Deal



Democratic senators want deal blocked

T-Mobile (TMUS) is making every effort to save its merger deal with Sprint (S) as opposition to the deal also grows. A group of Democratic senators recently wrote to regulators reviewing the proposed merger of T-Mobile and Sprint urging them to block it, according to a Reuters report. In addition to lawmakers, labor unions and media companies Dish Network (DISH) and Altice USA (ATUS) have also voiced opposition to the idea of merging T-Mobile with Sprint. Dish and Altice are planning to enter the mobile services market where they would compete with T-Mobile, Sprint, and other operators. The opposition to the proposed T-Mobile-Sprint merger deal is mostly based on the grounds that it would lead to job losses, stifle competition, and raise prices for consumers.

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T-Mobile is making concessions to save deal

T-Mobile has vigorously defended its deal with Sprint since the companies agreed to join forces in April last year. The company has ratcheted up its defense in recent weeks, even to the point of making voluntary concessions to appease regulators into giving the deal the green light. For example, T-Mobile has pledged not to raise prices for its customers for three years if it wins approval for its proposal to combine with Sprint. At the same time, the company has said it will not use equipment from Huawei and ZTE in building its 5G network.

The United States and other countries are uncomfortable with having Huawei technology used to build their 5G networks on national security concerns. T-Mobile last year signed Huawei rivals Ericsson (ERIC) and Nokia (NOK) to supply equipment and technology for its 5G network buildout projects.

T-Mobile generated $11.5 billion in revenue in the fourth quarter, representing an increase of 6.4% year-over-year.


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