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Sprint and T-Mobile Rekindle Merger Talks (Again)

Phillip Dampier April 10, 2018 Competition, Consumer News, Public Policy & Gov't, Sprint, T-Mobile, Wireless Broadband No Comments

The Wall Street Journal today reported Sprint has rekindled merger talks with Deutsche Telekom’s T-Mobile USA, the third time such merger discussions have taken place in the last four years.

The newest round of preliminary discussions begin five months after earlier negotiations collapsed over the issue of which merger partner would ultimately control the combined company.

Analysts are uncertain if the latest round of talks will amount to anything, especially after watching the Trump Administration’s Justice Department aggressively fight the merger of AT&T and Time Warner, Inc., on antitrust grounds.

If Sprint and T-Mobile combine, it would create three large national carriers competing with each other and an assortment of smaller regional wireless carriers, possibly leading to price increases for consumers who have benefited from the last few years of aggressive sales and promotions launched by market disruptor T-Mobile USA and, to a lesser extent, Sprint.

A Sprint/T-Mobile combination would have nearly 100 million customers, making it America’s second largest wireless company just ahead of AT&T, which had 93 million U.S. subscribers at the end of 2017. Verizon Wireless would continue to be the nation’s largest wireless company with 116 million customers.







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