News broke out this morning that T-Mobile and Sprint are planning to merge for $26 Billion. There were talks previously of this merger many times in the past years however they fell out due to each company backing out last minute, or disagreement in terms and conditions. However, now it finally seems that T-Mobile is ready to buy Sprint if it is allowed by antitrust enforcers.
If this deal goes through, the new company will still be called T-Mobile, and now there will only be three big players in the wireless market industry.
Both companies hope to use combined savings to research and develop 5G network all across America. This will propel them ahead of AT&T and Verizon in the network coverage and speed competition, and give T-Mobile a combined user base of 100 million.
T-Mobile and Sprint were initially in talks back in 2014 to merge. However, it was scrapped because of challenges from the Obama Administration. The regulators noted that having four companies was the perfect balance in having a proper competition that benefited the consumer. Now under the Trump administration, the companies have a better shot at the merger going through.