T-Mobile COO Mike Sievert confident merger will be completed, but T-Mo does have backup plans

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Some analysts may think that Judge Victor Marrero will decide to block T-Mobile and Sprint’s merger, but T-Mo COO Mike Sievert is remaining positive.

Speaking at an investor relations event today, Sievert said that “right is on our side” in T-Mobile’s effort to win the lawsuit brought by a group of state attorneys general and merge with Sprint. “We’re very anxious to see the judge’s verdict,” Sievert went on to say.

Despite his confidence, the soon-to-be-CEO did confirm that he would consider a settlement with the state AGs. “Of course. It’s never off the table,” Sievert said.

Testimonies in the trial wrapped up last month and final arguments are slated to happen on January 15th. It’s expected that Judge Marrero will make a decision in the case in February.

Meanwhile, a report from Fox Business‘s Charles Gasparino says that T-Mobile and Sprint may team with the Department of Justice to appeal the judge’s ruling if he blocks the merger. There’s reportedly nothing set in stone right now, though, because all parties are waiting for Judge Marrero’s decision before making any plans.

If the merger is blocked, T-Mobile does have a couple of backup plans. During the same investor event today, T-Mobile CFO Braxton Carter said that if the merger fails, T-Mo will immediately begin a $9 million stock buy-back and that getting more spectrum would be a focus. T-Mobile CTO Neville Ray agreed, saying that the carrier would be interested in acquiring C-Band spectrum or 3.5GHz CBRS airwaves.

Carter also hinted that acquisitions of smaller carriers are a possibility if the Sprint merger falls through, saying that there could be some “wonderful synergies”.

The merger is a big deal for T-Mobile, having been working on it for more than a year and a half, making a deal with Dish Network, pledging to build new customer service centers, and even teasing three new Un-carrier moves if the merger happens. It’s anyone’s guess how the judge in the trial will rule right now, though, and so it’s smart for T-Mo to have a backup plan or two to help it continue to build out its 5G network and compete with AT&T and Verizon if the merger is blocked.

Source: Light Reading

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  • Sharti24

    What if Sprint threatens to file for bankruptcy if the merger gets denied?

    • Jose Mendoza

      Let them. After all, they have had lots of cash disappear into nowhere. At least TMO despite also being a corporation, knows how to use their $$ by satisfying their customers. Sprint can’t even do that.

  • JG

    Just so long as the backup plan does NOT involve joining the dark side and merging with Comcast…

    • Willie D

      That’s already one of their backup plans, as is doing the same with Dish. Dish and TMo would be a better bet than Comcast. Dish and Sprint are better than TMo and Sprint.

  • Glenn Gore

    Even without any merger, T-Mobile has built new coverage to the point that they completely cover my state now, where there was none before, on Bands 2 and 71, and now added 5G to that coverage in most areas around here. Not full time here yet, but I did see 5G for a while last Sunday on my McLaren 5G phone, so they are obviously testing the equipment and coverage should get here soon.

    Therefore, I think that T-Mobile might be OK and have some creative strategies in case the merger does not go through. In a way, I would be fine if there were no merger, since this would foil Dish Network’s cellular plans. I want Dish to have to give up their spectrum after sitting on it for years and paying off politicians and regulators who are allowing it to happen.

    • Sharti24

      What state/location are you in?

      • Glenn Gore

        Western half of Oklahoma. Five years ago, T-Mobile had no coverage here at all. Now they blanket it with LTE+ and Band 71. It was among the first round of 600 MHz rollouts. Parts already have 5G with more coming soon.

  • Acdc1a

    Smaller carriers like US Cellular and C Spire? I was for that in the first place.

    • Marion Stevens

      I’ve heard in the past that the family that owns USCC isn’t interested in selling. Not sure about C Spire, but I’d think that, if they had wanted to sell in the past, they could have, especially when VZW didn’t have much presence in Mississippi. Instead, VZW bought ALLTEL’s assets and rebuilt its almost nonexistent network into pretty good coverage. Also, C Spire is now pretty heavily into home Internet, both via FTTH and fixed wireless, so I’m not sure if they’d want to sell off their wireless assets, lest they have to abandon fixed wireless. Of course, now that I’ve said all that, they’ll probably announce a sale tomorrow. :) If T-Mobile got them, they’d immediately be a major player in Mississippi, since C Spire seems to have better coverage there than anyone else. Back when VZW didn’t have a network there, their customers roamed on C Spire’s CDMA network.

  • BTCSTACKER

    yeah let’s buy more spectrum when we (T-Mobile) can’t even get 600mhz or even 700mhz rolled out properly in places like all of East Texas.. Nearly all towers are just AWS only..

    • mikeZo6

      Amen

    • superg05

      DOWNLOAD FCC SPEED TEST IN APP STORES

  • Willie D

    There needs to be provisions included that arent just for a few years or offering a limited amount of low income plans and calling it “uncarrier”, it’s not. The main reason this acquisition (not merger) is being so scrutinized is because it involves taking out a national competitor and limiting selection to 2 big overpriced carriers who generally limit all customers use and 1 other carrier who we have to pray and hope that they uphold promises and benefits (lower price and more service) neither of which are set in stone and deliberately staged to be broken once the initial hype wears off.

  • superg05

    THE

    GREED

    FORCE IS

    STRONG IN

    Deutsche Telekom

  • frankinnoho

    Hopefully Plan B isn’t Comcast.