Recently, the combined US carrier T-Mobile and Sprint ushered in a new progress in both the catalytic and adhere to long-term concessions, US regulators seem to merge their attitude changed. According to foreign media reports, the US Federal Communications Commission (FCC) has officially ratified the US third-largest wireless operator T-Mobile proposed by $ 26.5 billion to the US fourth largest wireless operator Sprint.
This means that the $ 26.5 billion of acquisitions across the biggest obstacle, FCC approval is expected to be announced before the end of this month so that text. It is understood that the new T-Mobile T-Mobile and Sprint merger is expected valuation of about $ 160 billion.
Needs across the last obstacle
T-Mobile plans to acquire Sprint in early 2008 to reveal signs, but all ended in failure. With the acquisition in 2014 of a clear plan, but T-Mobile and Sprint merger plan because it failed to get US regulatory approval of stagnation; in April 2018, T-Mobile, consent to the acquisition of the entire equity trading Sprint, deal size of about $ 26.5 billion, after the acquisition once again into a multi-year regulatory dilemma. The combined road T-Mobile and Sprint is so rough, "anti-monopoly" is one of the biggest obstacles.
In order to avoid monopoly is suspected, one of the two major satellite TV providers Dish Network will invest US $ 5 billion acquisition of Sprint's Boost Mobile, Virgin Mobile and other prepaid phone services, as well as some of Sprint's wireless spectrum and other assets. At the same time, T-Mobile Dish Network will provide at least 20,000 base stations and hundreds of retail stores, Dish Network also has the right to use T-Mobile's network within seven years.
Although the merger has almost cleared all regulatory hurdles, but before officially launched T-Mobile still has some way to go, both parties also need to face litigation attorney general from 13 states and the District of Columbia.
The lawsuit is aimed at Sprint and its parent company Softbank (Softbank Group), as well as T-Mobile and its parent company Deutsche Telekom (Deutsche Telekom). Lawsuit claims that the completion of the deal would reduce competition and lead to rising consumer tariff. However, Sprint and T-Mobile claims that the merger will allow them to have the ability to compete with competitors 5G technology AT & T and Verizon, litigation trial date has been set in the December 9.
If all goes according to plan, the US wireless services industry will shift from the "Big Four" lineup is more compact operators "big three" camp within a few months, the current Verizon and AT & T duopoly position could be threatened .
The new T-Mobile will be full sprint 5G
Currently, Verizon and AT & T have launched 5G network, and Sprint and T-Mobile are lagging behind. According to the current development momentum of the US telecommunications point of view, both in the subscriber base, revenue size or network coverage, T-Mobile and Verizon and Sprint are not AT & T "Hutch" opponent.
In the critical period 5G construction, this merger seems to bring a chance to "turn overtaking". Four major US carriers in 2019 earnings disclosures, AT & T subscribers in the second quarter 2019 amounted to 159 million subscribers Verizon 2019 amounted to 156 million in the second quarter, T-Mobile (the second quarter of 2019 the number of users 83.1 million) and Sprint (the number of users the first quarter of 2019 54.5 million) are added 138 million subscribers, the new T-Mobile significantly narrow the gap between the two giants, reducing competitive pressures therewith.
T-Mobile and Sprint previously announced, in the next three years will invest 30 billion US dollars heavily in building new networks and deploy new business plan in 2024 to improve the speed of 15 times the national average. T-Mobile further pointed out that the user wants to use Verizon's 5G business need to pay an extra $ 10 per month, T-Mobile launch 5G service, consumers will not be charged these costs.
T-Mobile CEO John Legere had stressed that the new T-Mobile is definitely conducive to innovation, but also benefit consumers. T-Mobile is building "accessible for all 5G", because of its early competitors clearly high, medium and low frequency spectrum strategy, the service will cover the real America.
In this regard, Strategy Analytics analyst Susan said the combined T-Mobile and Sprint will use the 600MHz and 2.5GHz spectrum combination, the new T-Mobile in the realization of network coverage in remote areas, will be able to effectively upgrade their skills in urban and suburban areas network capacity and coverage of the market, resulting in more favorable market position, building a faster, more competitive 5G network.
Source; World Communications
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