Tmobile And Sprint Merger: What's The Hold Up?

The merger between T-Mobile and Sprint was a long time coming, with the two companies first discussing the possibility in 2013. After a lengthy approval process, the merger was finalised on April 1, 2020, with T-Mobile emerging as the surviving brand. The deal, worth $26 billion, created a wireless behemoth, with more than 100 million customers, bringing it closer to rivals AT&T and Verizon. The merger was expected to improve overall 5G wireless technology, with T-Mobile committing to expanding rural coverage with a 5G network covering 97% of the US population in three years and 99% in six years.

T-Mobile's acquisition of Sprint was finalised on 1 April 2020

The combined company, known as the "New T-Mobile", now has over 100 million customers, bringing it closer to rivals AT&T and Verizon. T-Mobile has committed to not raising prices for three years and has promised improved coverage and data speeds for its customers. The merger is expected to result in a more robust 5G network, with T-Mobile utilising Sprint's mid-band spectrum to deploy 5G across a wider area, including rural communities.

While the T-Mobile brand emerged as the surviving brand, the integration process will take time. Sprint customers will continue to use their original network and will gradually be transitioned to T-Mobile plans and services. T-Mobile has assured customers that they will be able to keep their current plans and benefits, such as Hulu and Tidal access, for at least three years. Additionally, Sprint customers will gain access to T-Mobile promotions, such as T-Mobile Tuesdays.

The merger has resulted in leadership changes, with CEO John Legere stepping down and Mike Sievert taking on the role of President and CEO of the combined company. The deal has also had an impact on employment, with some job cuts and the creation of new positions within the merged entity.

The merger reduced the number of major US cell carriers from four to three

The merger between T-Mobile and Sprint was a long time coming. As early as 2013, there were reports that Sprint Corporation and its parent company, SoftBank, were working towards acquiring a majority stake in T-Mobile US. However, the deal only came to fruition in 2020, with T-Mobile emerging as the surviving brand.

The merger, which was an all-shares deal worth $26 billion, reduced the number of major US cell carriers from four to three. This has raised concerns about reduced competition and potential price increases for consumers. Indeed, critics have pointed out that there is no clear way to hold the carrier accountable to its promises of improved coverage and data speeds, and that higher prices may be inevitable.

Despite these concerns, the merger was approved by the necessary regulatory bodies, including the Federal Communications Commission (FCC) and the California Public Utilities Commission (CPUC). The FCC, in particular, supported the merger because of its potential impact on 5G deployment in the US. T-Mobile and Sprint's combined spectrum will enable them to deploy a nationwide 5G network, with faster speeds and greater coverage than existing 4G LTE networks.

In the immediate aftermath of the merger, T-Mobile committed to not raising prices for three years and to honouring existing Sprint plans and benefits. The company also began working on integrating the two networks, with the goal of providing a seamless customer experience. T-Mobile also expanded its T-Mobile Tuesdays app, which offers free stuff and deals every Tuesday, to all former Sprint customers.

Over time, the two brands will fully integrate, and customers will transition to the T-Mobile brand. This process has already begun, with Sprint stores being updated with T-Mobile branding and most T-Mobile stores now serving both Sprint and T-Mobile customers.

T-Mobile promised not to raise prices for three years

T-Mobile and Sprint merged in 2020 in an all-shares deal worth $26 billion. As part of the merger, T-Mobile was legally required to not raise prices for three years. However, in 2024, T-Mobile has raised rates on select legacy plans, with increases of $2 or $5 per line. The company has stated that this is to keep up with rising inflation and costs.

T-Mobile has emphasised its commitment to offering the same or better rate plans for at least three years, including access to 5G. In a blog post from 2019, then-CEO John Legere stated that the company's merger with Sprint would make wireless and in-home broadband more competitive, challenging the dominance of companies like AT&T and Verizon. Legere also emphasised that the company would not raise prices, saying that doing so would be "bad business" and would damage the brand that T-Mobile had worked hard to build.

Despite these assurances, T-Mobile has been accused of raising prices through forced migration to newer, more expensive plans. In 2023, the company announced that it would be moving customers to newer plans with more benefits at a "different cost". While T-Mobile framed this as something positive for customers, the change resulted in increases of around $10 per line. Customers were given the option to opt out of the migration, but this required contacting the company directly.

T-Mobile has also extended the T-Mobile Tuesdays benefit to all Sprint postpaid customers, and the company has launched new 5G unlimited tariff plans for T-Mobile US and Sprint customers with aggressive pricing.

The merger will lead to improved coverage and data speeds

The merger between T-Mobile and Sprint, which was finalised on April 1, 2020, is expected to result in improved coverage and data speeds for customers of both carriers. This is due in part to the combination of the two networks, with Sprint subscribers in areas without LTE coverage automatically connecting to T-Mobile's network. Eventually, the networks will fully merge, resulting in greater coverage for all customers.

In addition, the merger provides T-Mobile with access to Sprint's valuable midband wireless spectrum, which allows for faster 5G service that can cover greater distances and even penetrate walls, addressing a common issue with 5G signals. T-Mobile has already begun deploying this spectrum in select cities, and customers with 5G-enabled devices will gradually experience faster data speeds. However, it's important to note that the full rollout of these improved data speeds will take several years, and customers will need to upgrade to 5G-compatible devices to benefit from the enhanced performance.

Sprint customers using select Samsung Galaxy S20 models will be able to connect to T-Mobile's existing 5G network. However, due to the integration of Sprint's 5G network into T-Mobile's, older Sprint 5G phones, such as the OnePlus 7 Pro 5G and LG V50 ThinQ 5G, will not be able to access 5G networks from either carrier.

As part of the merger agreement, T-Mobile committed to expanding rural coverage with a 5G network that covers 97% of the US population within three years and 99% within six years. This expansion will significantly enhance coverage in underserved areas, providing faster data speeds and improved connectivity for individuals and businesses in these regions.

While critics have expressed concerns about the potential for higher prices following the merger, T-Mobile has assured customers that there will be no price increases for at least three years, providing some reassurance that improved coverage and data speeds will not come at the cost of higher bills in the immediate future.

T-Mobile will expand its 5G network to cover 97% of the US population in three years

The merger between T-Mobile and Sprint was completed on April 1, 2020, with T-Mobile emerging as the surviving brand. The Sprint brand was discontinued on August 2, 2020.

T-Mobile has committed to delivering the same or better rate plans for at least three years, including access to 5G. The company has also committed to offering 5G to 99% of the U.S. population in the next six years.

T-Mobile's 5G expansion plans are ambitious. The company aims to cover 90% of Americans (approximately 300 million people) with its Ultra Capacity 5G by the end of 2023. This is the faster mid-band and mmWave service. T-Mobile also plans to cover 97% of Americans (about 320 million people) by the end of 2022 with its slower low-band 5G, which it calls Extended Range.

T-Mobile's 5G expansion plans are made possible by its merger with Sprint. The combined company will have access to Sprint's mid-band spectrum, which will enable T-Mobile to deploy 5G in rural areas. The merger will also give T-Mobile access to more towers, increasing its 4G LTE coverage from 99% of Americans to 99.7%.

T-Mobile's 5G expansion will provide faster speeds and broader coverage for its customers. The company's aggressive expansion plans demonstrate its commitment to delivering the best value in wireless and aggressive pricing for its customers.

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