For years Sprint and T-Mobile toyed with the idea of a merger, and finally, on Sunday, the carriers announced plans to combine. During a press conference Sunday, T-Mobile CEO John Legere said the move will aid in Sprint and T-Mobile’s plan to deliver “the highest capacity network in U.S. history.”
In addition to their long-awaited merger, the companies announced their joint venture would also help establish a nationwide 5G network. In his announcement Legere added that the move was “for the benefit of customers.”
“I’m excited to announce that @TMobile and @Sprint have reached an agreement to come together and form a new company—a larger, stronger competitor that will be a force of positive change for all US consumers and businesses!” he wrote, adding, “With @Sprint’s incredible 2.5 GHz spectrum, @TMobile’s nationwide 600 MHZ + our other combined assets… Together, we will build the highest-capacity mobile network in US history!! I’m taking 30X more capacity than T-Mobile today!!”
Following the merger, the company would continue to be called T-Mobile and set to be headquartered in Bellevue, Washington. Legere would continue to serve as CEO while Mike Sievert, T-Mobile’s current COO, will be named President and COO of the combined company. Meanwhile, Sprint’s CEO Marcelo Claure will serve on the board of the new company.
“The combination of these two dynamic companies can only benefit the U.S. consumer. Both Sprint and T-Mobile have similar DNA and have eliminated confusing rate plans, converging into one rate plan: Unlimited,” Claure said in a statement. “We intend to bring this same competitive disruption as we look to build the world’s best 5G network that will make the U.S. a hotbed for innovation and will redefine the way consumers live and work across the U.S., including in rural America.”
Servicing nearly 100 million customers, Legere and Claure believe the merger will also help fuel more jobs in the industry. “I am confident this combination will spur job creation and ensure opportunities for Sprint employees as part of a larger, stronger combined organization, and I am thrilled that Kansas City will be a second headquarters for the merged company,” Claure added.
Sprint first tried to buy T-Mobile back in 2014, but that deal didn’t pan out. The companies remained in talks, and almost reached a deal in September 2017. However, Sprint called it off in October. T-Mobile responded with its own offer to purchase Sprint in November, and that similarly fell through. The companies were back at the deliberating table earlier in April and finally reached a $26 billion deal, CNBC reported on Friday.
Despite Sunday’s accomplishment, the merger still has to be approved by regulators before customers will see any changes in their service.
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