T-Mobile and Sprint reportedly working on final details of merger

tmobilesprintlogos

The oft-rumored T-Mobile-Sprint merger may be nearing its completion.

T-Mobile and Sprint are working out the final details of a merger, and it’s said that an announcement is likely to come when the two carriers report their quarterly earnings at the end of October. The two sides are reportedly conducting due diligence to determine the exchange ratio that’ll lead to Sprint’s valuation.

Also in discussions are things like where the combined company’s headquarters would be and who would be part of the executive team. It’s said that there are currently no plans to include a breakup fee in order to reduce the risk for T-Mobile and Sprint if the deal is rejected by regulators. However, Sprint majority owner SoftBank may push for a breakup fee if it feels like it’s compromised more on parts of the deal that haven’t yet been finalized.

Neither T-Mobile nor Sprint have announced the dates of their next quarterly earnings reports. Last year, T-Mobile’s fell on October 24th and Sprint’s on October 25th.

While still very much a rumor, the latest reports make it sound like a deal between T-Mobile and Sprint is getting closer and closer to being done. Just because the two carriers strike a deal doesn’t automatically mean that they’ll instantly become one, though, because the deal will also need to earn regulatory approval.

Source: Bloomberg

Tags: , , ,

  • sosarozay300

    Sprint-Mobile

    • Hurlamania

      Bigger T-Mobile no more sprint

      • msohail

        I agree .. not more Sprint.

    • Marlon Waite

      T-Mojo

    • Rich Brown

      SPREE Mobile, or just SPREE for short.

  • Patrick McLaughlin

    only if tmobile is the winner in the merger. Sprint sucks. Id love to see tmobile get Sprints spectrum especially along major highways like Highway10 east of El Paso to West of San Antonio, Texas

    • marque2

      El Paso to Midland is also barren.

  • vinnyjr

    T-Mobile will be running the show. Sprint has proven they don’t know how to run Mobile Network. Just hope this merger doesn’t ruin T-Mobile.

    • Jason Caprio

      I agree. As much as I advocate Verizon because of it’s raw coverage, T-Mobile has come a VERY LONG WAY over the last 4 years. Sprint’s network is a total disaster.

      • marque2

        What do you have against WiMax?

    • John Doe

      Even with T-Mobile running the show it will still take a long time to unify the company and train sprint employees, various contracts sprint has with contractors and leasing agreements for towers, and antennas. It will probably take 4-5 years and all of this will be happening during 5G rollout so T-Mobile has A LOT to prove specifically John Legere if he is the boss. Hopefully Masayoshi Son backs off.

      The day T-Mobile sinks the Sprint brand and gets rid of CDMA is the day Sprint will be officially dead.

      • Crackers luv M3TH

        It won’t take long to train Sprint employees plus I expect some locations to close. Plus T-Mobile will move employees around to different stores for training purposes. T-Mobile converted Metro from CDMA to GSM pretty fast so Sprint will not take 5 years probably 2-3 if the deal is approved.

      • Jeff G

        It took tmobile 6 months to deal with Metro PCS CDMA to GSM switch.

        Unlike Sprints NexTel acquisition thst destroyed Sprint and they even to this day Still pay for that mistake . Sprint as a carrier is done. John Legere knows the spectrum and all the unused is an gold mine of unused potential.

        What T-Mobile has in store will shock the industry.

        • John Doe

          It did not take T-Mobile 6 months to finish the Metro PCS deal…it took like 3+ years ad they are still not done.

  • g2a5b0e

    If the FCC didn’t allow this so many years ago, I doubt they’ll allow this now especially considering how many more subscribers both companies have than they once did.

    • Joe2050

      With Ajit. Pai running the FCC, it would be the wild wild west with little to no opposition and no regulation.

      • John Doe

        He used to work for Verizon so who knows

        • Jeff G

          One of Verizon’s past lawyers actually.

  • Joe2050

    If this merger really happened, I hope within the next 24 months, T-Mobile doesn’t become another corporate greedy carrier with the old status quo that chargers more for less and no longer a champion to win customers as there is less competition to do so (i.e. Cable companies)

    • zPacKRat

      this is already apparent, the 2 for 100 is now 2 for 120, Netflix is only available on the 120 product, they offered new subs a lifetime 20% discount a few months back on the 2 for 100, but would not extend that to existing customers. Uncarrier is coming full circle.

      • Crackers luv M3TH

        You know what a promo is a temporary deal. Two unlimited lines on verizon cost $160 plus taxes and fees. Stop whining and get metro then.

        • zPacKRat

          Take a hike pal, not whining only stating the obvious. While I’m sure you worship the ground that John Legere walks on, I don’t. And I don’t appreciate not being able to move to a promotional plan when it’s offered to new customers. All in all not a very “uncarrier” approach.

    • Jeff G

      Cable companies in regards to converter boxes are done. John Legere has stated most watch tv on their phones,tablets ,in cars ,computers and streaming is the big one cable is done streaming is here to stay . internet is what cable companies have to focus on when they are being forced to do so.

  • bman893

    Joe2050 tmobile is already becoming greedy again you don’t have to wait for it to happen

    • Joe2050

      I could see it slowly changing to that, with this merger it just accelerates the greediness even more.

      • Jeff G

        The point if Uncarrier is exactly that to not be like other carriers to force other carriers to change to keep the industry as a whole competitive. To stop the greed is the outcome John Legere wants so Verizon and At&T aren’t asking a customer to pay out of pocket more than needed in tern inflation profit. He will force them to change and keep price a low and competitive yes marginal increase but marginal price increases to keep some profit and to pay for the upkeep of towers and the company itself. He is far from done telling Verizon and AT&t how its done and far from done taking all the customers they have . Legere wont stop until he has changed it all and has ultimately taken number 1 and Verizon has became number 2 or gone out of business.

  • SecretStatePolice

    John Legere will now wear a magenta shirt and yellow pants.

    • (J²)

      Lol

      Unlikely, Sprint, Boost Mobile, Virgin Mobile (and whatever else) will likely become T-Mobile MNVO’s like MetroPCs did. I doubt T-Mobile will kill the brand entirely.

      • Bklynman

        I think you are right,no matter how we feel about Sprint,their mnvos are well known. I doubt very much Virgin would give up there name. Freedom Pop is run by Sprint,and few others too that you can only get by online,the reviews I have read about PF,are pretty bad,so Tmo just might shut them down,if this goes thru.

    • Tony Chen

      nice then it will be T-print?

  • Philip

    No added coverage benefit for Tmo, just more subscribers.

  • Luis Hotdaddy Vasquez

    This customer reportedly looking for another carrier to switch to if this merger were to happen…. Why is T-Mobile even looking to merge with the worst of the four!!?!?!

    • Crackers luv M3TH

      Spectrum fool that’s why. You can’t expect T-Mobile to get better coverage by over spending in the Spectrum auction.

    • Jeff G

      Spectrum and he has said in past Uncarrier moves he will surpass at&t in record time.

  • Stephan Tchorbajian

    I suspect at least 5-10,000 jobs impacted by this merger which will more than likely cut into HR, accounting, customer service, engineering, and IT. If Sprint and T-Mobile want to merge I personally don’t care as long as the coverage stays the same/improves, the current rate plan that I have and existing users have is grandfathered, T-Mobile switches all users to their network, and John Legere and his team along with Neville Ray run operations. I do not want anything to have to do with Sprint service as they are horrible, and if any of these aspirations of Sprint prevail I will cancel my lines and move to prepaid to good. I don’t want a draconian carrier but one that’s innovative.

    • SteveD

      Why engineering? Sprint has long outsourced their network to Ericcson to run. Which has been a disaster for their network. Unless you think the combined company would keep E as their network maintenance provider..

      • Stephan Tchorbajian

        Sprint still have some native engineers for it’s network. However, it would make sense for them to get rid of some of T-Mobile’s field technicians. I really don’t know what the plan is but we’ll find out soon.

        • keepitreal25

          Very few , work in engineering for Tmo and I highly doubt they would keep on another company’s employees with no vested interested in sprint/ t-mobile instead of employees they trained to run tmo network !

        • SteveD

          Well see.. thats the interesting bit. WIth a merger they would actually need more technicians than they already have. Meaning.. Tmobile has it’s own Network ops department and field technicians.. Sprint merely outsources it all to E///.
          There really is only 2 ways for this to go.. Keep E/// running the entire show.. which has not been good for Sprints Network.. Or add more employees and keep it in house.

          In house employees have a vested interest and ownership of the network outside of a mere paycheck. So.. who knows.

  • George B

    WHY would T-Mobile want to merge with Sprint and take on their debt? My best guess is that T-Mobile wants to move up to being a full-price carrier like AT&T and Verizon and the presence of Sprint puts downward pressure on how much they can charge. The merger would not be good news for consumers.

    • (J²)

      T-Mobile will be acquiring Sprint’s debt and assets. Assets being Spectrum, which will be more than enough to fix their network woes and launch 5G well ahead of Verizon and AT&T.

      Verizon has 146 Million
      AT&T has 136.5 Million
      T-Mobile and Sprint have a combined total of 132.3 Million

      This will literally put T-Mobile on par with AT&T and cause both carriers to fear for their brands, changing the industry forever. Remember, DT wanted to sell T-Mobile when it wasn’t profitable and was reluctant to endorse the Uncarrier antics lead by John Legere but now they are all on board. The fact that this foreign owner has carriers across the world which offer services at competitive rates indicates that a merger will likely change that as long as DT and John Legere keep control.

      I think the merger will likely be approved in it’s current “rumored” form.

      • Jolene

        I think it will make a better single for their costumer”s..their towers will be better..

    • Jeff G

      T-Mobile can get rid of Sprints debt just with the quarterly sales it makes.

  • morjoie

    I believe regulatory approval is a foregone conclusion. Even with the wildest flight of fancy, I can’t imagine a scenario where regulators would say “no” to this merger. I just signed up for unlimited data with T-Mo, so I hope that isn’t spoiled with price hikes or retrenches post-merger.

  • justin l

    Its possible Tmo/Sprint are merging perhaps to create a dual path between CDMA and GSM as well as LTE, This would murder Verizon (CDMA only) as well as AT&T (GSM only) Having dual path communications would close that dead spot gap that Verizon thrives on right now. TMO & Sprint actually offer the lowest prices among the 4. Sprint just doesnt have as much to offer as TMO

    • lomsha

      No benefit in that, CDMA is on its way out

      • keepitreal25

        T-Mobile has no plans to shut down its 2g network that businesses and customer still utilize in some lines of work , so why would you assume they would naturally dump cdma instead of figuring out the best way to utilize it ?

        • lomsha

          Because cdma is antiquated, might as well start getting rid of it. Not saying it will happen overnight but tmo is not gonna invest anything in it.

    • Captain Insano

      CDMA is dead. There will be no dual. T-Mobile will reframe the CDMA to LTE like they did to metro Pcs

      • jetscreamer01

        That is the only positive.

    • Stephan Tchorbajian

      Honestly, that would really suck if it happens. If that occurs I’m switching to “cringes” AT&T. I want nothing to have to do with CDMA or dual mode. I have a brand new LG G5 and am not planning on getting another handset for the foreseeable future.

      • marque2

        I wouldn’t worry, the whole industry is going LTE. GSM and CDMA are legacy now and will disappear in a few years like 2G

        • Jeff G

          Almost right . CDMA is being phased out (what Verizon uses ) Verizon will be switching to GSM eventually. GSM is here to stay.

        • marque2

          Are you saying GSM and LTE are the same thing or one is built on the other? I thought they were independent systems.

        • Jeff G

          LTE works on both . LTE is just a speed related like 4G is 5G is where things will get interesting.

          LTE (Long Term Evolution) is a wireless broadband technology for communication of high speed data for mobile phones. The main difference between the technologies is that both CDMA & GSM can support cellular and data, whereas LTE can only support data.

        • Jeff G

          GSM and CDMA towers to transmit signal differently. One requires more towers per 3 to 5 miles the other doesn’t per as one travels mote close to the plain of the other not. GSM is still gar superior for speed than CDMA.

          FCC allows a towers to transmit up to 5 miles this mainly applies where residential and business are a concern there are some smaller cell companies that broadcast even wider than 5 miles and can interrupt a radio signal just passing said towers.

      • Jeff G

        T-Mobile did fine with metro pcs thst was CDMA they slowly faded it out revamped thr towers offered all metro PCS a discount or free phone. Now metro even though they are GSM noe and have Metro signage still they sell all tmobile phones it’s just a mvno (otherwise known as prepaid) so Sprint as you know it will keep the signage and have to sell tmobile phones in stores. So there should be no worry or beef.

        • Stephan Tchorbajian

          Jeff. T-Mobile did a fantastic job with MetroPCS. I think that merger was the initial catapult for their success back in 2014. I honestly hope T-Mobile retire the “Sprint” branding after the company is officially consolidated and retire the CDMA network which I think will take longer as Sprint has 58 million subscribers. This transition may take over 2+ years. However, I’m worried that Son will ruin the existing T-Mobile management. I do not want the existing CTO John Saw or Macello Claure to get involved, because they will ruin the existing status quo. If this happen’s I’m going to switch over to Simple Mobile.

  • Tmobile9922

    Peeps that shit is real! Get ready for “T-Mobile Sprint” as your new carrier!
    tmobilesprint.com IS OWNED BY DT!
    https://www.whois.com/whois/tmobilesprint.com
    So is t-mobilesprint.com
    https://www.whois.com/whois/t-mobilesprint.com

    • lomsha

      That’s a mouthful lol, and unoriginal.

    • Jason Caprio

      That domain was registered back in 2008. This means nothing.

  • Bklynman

    If this merger go as plan the DOJ,allows it,does this mean Tmo will now have techs in their stores like Sprint,and big red does? Att.has tech centers in NYC,not sure about the rest of the country.

  • Captain Insano

    I hope this does not go through. I’m T-Mobile as my business line and att as my personal. To have four companies is best for consumers. Whenever T-Mobile does major stuff the other big two try to match it in a crappy way at times but at least they try. Sprint is a money parasite and a crappy service provider. Leave T-Mobile alone.

    • Jeff G

      US Cellular although small and number 5 at the moment would take sprints spot. So there would still be 4 carrier

      • jdubtrey

        US Cellular is regional and won’t influence the market that much.

  • Captain Insano

    Could they do it like in the UK T-Mobile merged with orange to create EE. Seems to work there. But sprint is terrible. Idk.

    • Andrew

      EE was awesome when I visited the UK

  • Darren

    I live in the Kansas City area where Sprint is headquartered (in Overland Park, KS). About 5,000 employees work at the Sprint headquarters. This will hit this region hard with the job losses and all the indirect impacts from the loss of those jobs. Really too bad for this area the economic impact. The arena here is called the Sprint Center… I guess it will change to the T-Mobile Center.

    • Mike

      Hasn’t Sprint already fired a lot of people over the years as it has down-sized and sold off business units (like the landline business spun off as Embarq)? And under the poor direction and leadership of Dan Hesse , a former ATT cronie? The failed Nextel merger? And with the failed operations of Clearwire and closing of that business? Sprint has had a terrible long term business plan for a very long time. If you want to save any of the jobs that are currently at Sprint, a merger would likely be the best option. Even at a fraction of the 5,000 is better than all gone in an insolvent Sprint organization as customers continue to defect….which is where Sprint seems to head each subsequent day. (This isn’t a far cry from T-mobile just a few short years ago.)

  • Gardo

    Guess I’ll be taking my 6 lines to AT&T. The only way I stay is if I can keep my plan. I have a feeling that since there is no incentive to compete all three carriers are going to over charge for service and keep the same high prices so they don’t lose customers. As always the customer will be screwed. Bye bye uncarrier it was fun while it lasted.

    • Crackers luv M3TH

      Bye u wont be missed

      • jdubtrey

        He/she is correct, I fear. Gardo may not be missed but the price wars will be (by the consumer).

  • Opscom

    John Legere did come to Kansas City over the weekend for the first time since being CEO to visit the “great teams” in KC. Little does the public know he didn’t make 1 stop at a store in KC. The store rep I talked to said it was an unplanned visit and nobody leadership wise in KC was given a heads up. When you take into consideration John also met with the DT CEO a few weeks back I think the picture is very clear on what might happen.

  • Leland Schaible

    If they merge with Sprint I will drop T-Mobile I had Sprint years ago paid my bill they said they never received it they threw it out of my bank account then they wanted me to pay it again no I have a credit bureau stating from them far as I’m concerned Sprint’s no good just reading this I may just drop T-Mobile now anyway

    • keepitreal25

      Because of a misapplied or missing payment ?? Really lol

  • Joseph Guy

    not sure why people are getting pissed its t-mobile that owns and makes most of the call sprint will be like an step child in this

    • jdubtrey

      Is influence and branding all that people care about in this potential merger? Look, T-Mobile’s flagship service is like $70 tax included right now. Verizon and AT&T have $90 plans. Do you think T-Mobile will be that cheap going forward if they have no sprint to compete with? Sure, current users will be grandfathered, and T-Mobile save in the short run by getting rid of redundant resources. However, you better believe that prices will go up as they’ll have absolutely no incentive to price as aggressively as they have now.

  • Renaldo Epps

    I really believe that Comcast will win out in this battle. They are staying in the background and playing it cool. There BYOD and low cost of $45. per month may win. I love Tmo and Sprint is still giving away free service for a year. This looks like a speeding train wreck. T mo constantly speaking about faster services would just merge the sprint customers over which will add volume to its network. Tmobile believes its infrastructure can hold that many people. The sprint customers would have to change devices in 2 years to full GSM. Sprint will die a slow death like Radio Shack and their Nextel services. Its hard to take on a sinking ship when your ship is already taking on water.

    • Me

      You can’t BYOD at xfinity mobile, so until then, it’s still a niche market.

      • tendoboy1984

        Is Comcast bringing their services nationwide, or are they still regional?

        • Me

          No idea, but since it’s using Verizon’s network they definitely could.

  • jetscreamer01

    The silver lining is that Sprint will switch over to T-Mobile’s network, and not the other way around.

  • jetscreamer01

    This will suck for Sprint customers who just upgraded their android phone that only have cdma. They will be forced to upgrade to a gsm phone. Hopefully, T-Mobile will offer a trade-in.

    • Isaiah

      My guess is that they will be offered a free comparable phone when trading in their old CDMA Device.

      • Randall Lind

        My guess is CDMA will die a year later. When they brought MetroPCS it took a while to integrate the system.

  • tendoboy1984

    I consider myself a Democrat and I’m fine with this merger. T-Mobile will get Sprints’ customers, spectrum, and large phone selection; and T-Mobile customers will get more devices to buy instead of just the usual Apple/Samsung/LG.

    • jdubtrey

      And both user bases will probably get higher prices, as they no longer have to compete with each other but simply will aim to stay cheaper than Verizon and AT&T.

  • tendoboy1984

    If Sprint and T-Mobile merge, it won’t create a monopoly because there are still other options to choose from. ATT and Verizon will still exist, and there’s smaller players like Google Fi, Xfinity Mobile, and US Cellular.

    Not to mention all the prepaid options that aren’t owned by the “big 4”.

    • jdubtrey

      All carriers, prepaid or not, run on the big four networks with the exception of US cellular which is just a regional network anyway. The problem with a merger would be that the value market would be compromised . AT&T and Verizon compete at the top while Sprint and T-Mobile compete for the value customer. That would go away with a merger and would hurt the consumer.

  • Me

    But it’s not there at the moment, so until then, it’s still niche

  • Randall Lind

    As long as it remains T-Mobile I don’t care if it is called Sprint bye bye.

    • jdubtrey

      You may care when T-Mobile no longer has Sprint to compete with and raises prices simply to undercut Verizon and AT&T by a couple of bucks.