T-Mobile to merge with Sprint
T-Mobile (TMUS) and Sprint (S) have been trying to merge for years to compete with larger wireless carriers like AT&T (T). On May 20, T-Mobile issued a set of six commitments related to its proposed merger with Sprint. The commitments include building a 5G network, providing high-speed 5G services to rural areas, divesting Boost Mobile, offering in-home broadband service, offering competitive pricing, and honoring the MVNO agreement with Altice USA.
Sprint and T-Mobile think that these commitments will help the merger get approved. Completing the merger is still subject to regulatory approvals. After the significant commitments made by the companies, the FCC chairman, Ajit Pai, announced that it will support the merger. Pai will recommend that the FCC approve the deal. The deal still needs approval from the Department of Justice.
History of the T-Mobile and Sprint merger
In April 2018, T-Mobile and Sprint agreed to merge in an all-stock deal, which valued the latter at ~$26.5 billion. The companies attempted to merge for the third time. In 2017, the merger discussions collapsed due to a disagreement about the combined entity’s ownership. The first round of merger discussions in 2014 ended due to antitrust concerns.
T-Mobile made a profit of $908 million on revenues of $11.1 billion in the first quarter.