For a while now, many people including myself thought that Sprint and T-Mobile were so similar that they were the same company. Without ever taking the time to actually examine this, we now don’t have to because its about to be the truth.
Sunday April 29th, it was made official that Sprint and T-Mobile would merge in an all-stock transaction. As for the overseer of the resulting company, this will be handled ny T-Mobiles current employee John Legere as CEO and the headquarters will be at the location of T-Mobiles current base of operations in Bellevue, Washington. Mentioned on a side note however is that the current headquarters of Sprint will also act as another headquarters for the “New T-Mobile” in Overland Park, Kansas.
So what will this merger result as? Well the two companies have made a statement that they plan to spend around $40 billion towards this new company in the first three years of it’s life. This amount is more than 46% of spending than T-Mobile and Sprint combined in the last three years. In terms of the perks of this new company, they have stated that they will be offering 5G nationwide coverage across spectrum including T-Mobiles 600 MHz spectrum and Sprint’s 2.5 GHz spectrum.
The companies stated that they expect an increase in speeds by about 15x faster on average nationwide by 2024 and many customers to expect up to 100x faster speeds in comparison to the early 4G capabilities.
Not only does the new company offer potentially better services if everything goes off without a hitch, but there is also the increase in demands for hires because of the merge, resulting in about 200,000 people that will be needed to function the new company, in order to achieve regulatory approval. There was also talk that jobs will be created by building out a network and retail footprint in areas that are generally rural regions.
It is expected that this merger will close a large gap for Sprint and T-Mobile, resulting in coat tailing At&T and Verizon in total customers, and potentially opening new possibilities of overtaking the challenging companies.
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