Some rumors, if you say them enough, might eventually come true. And that is indeed the case today, as T-Mobile and Sprint have made a groundbreaking announcement on Sunday afternoon.
After years of speculation, rumors, official talks, negotiations, and dead ends, T-Mobile and Sprint are officially announcing today their plans to merge. Specifically, each company has agreed to definitive terms on a merger, something that didn’t seem all that likely not too long ago. But now that that important step has been reached, the official merge process can go through, with regulatory committees in the United States examining the deal and either blocking it or allowing it.
The new company will be called T-Mobile, and it will be based out of Bellevue, Washington (where the current T-Mobile is based). The Un-carrier’s CEO, John Legere, will retain his role as CEO for the new combined entity, and T-Mobile’s COO, Mike Sievert, will remain as the new COO and President. Sprint’s CEO, Marcelo Claure, and SoftBank’s (parent company of Sprint) CEO, Masayoshi Son, will be sitting on the new combined company’s board.
The announcement details plans, but doesn’t go into a lot of detail. The companies believe that the merger means they can create thousands of new jobs in the United States, while also improving the wireless carrier’s coverage scale, roll out 5G wireless technologies even faster, and “greater economies of scale”.
Now that the merger has been approved by the companies, they will need to convince the shareholders and regulatory committees before anything is made official.
Legere says this will make even more room for competition in the U.S. wireless space, which . . . seems hard to believe, considering there is one less major wireless company to consider. And that doesn’t even get into the prepaid wireless options that both of these carriers offer. There’s still a long, uphill battle ahead of the merger plans, though, so this might not even come to fruition anyway.[via T-Mobile]