THE NEW T-MOBILE: EXPLAINED!
Today John Legere, CEO of T-Mobile and Marcelo Claure, CEO of Sprint, released a cute little video where they officially announced that the two companies will merge. Now, the word “Merge” is important here. T-Mobile is not buying Sprint and Sprint is not buying T-Mobile. They are literally just joining together and forming a new company.
According to the merger, Sprint is valued at $26.5 billion and T-Mobile at about $54.1 billion. T-Mobile’s majority owner Deutsche Telekom will hold 42% of the new company, and Sprint’s majority owner, SoftBank, will own 27%, and public stakeholders hold the rest. The merged companies headquarters will remain in Bellevue, Washington. For those of you paying attention, that’s where T-Mobile’s headquarters are. Some Sprint executives will remain in the company. As for who’s gonna run the new company, that will be John Legere, of course. In my opinion, that’s the best choice here. John Legere has changed the mobile industry forever at least a couple times, and he’s without a doubt, the best guy to be the face of this new, massive company.
How massive, you ask?
Well, the merger will create the highest capacity network in the United States, instantly. Just like that. This should also enable lower prices, create thousands of new jobs and improve service in rural areas.
The real goal here is the race to 5G in America. There are no companies with the resources right now to be able to offer 5G and be able to cover all of America. Well, no enough resources, or enough reasons. Verizon and AT&T aren’t in any hurry, and why should they be? They’re the biggest wireless carriers we have to offer and a lot of the times, they’re the only choice for a lot of Americans. The New T-Mobile WILL have the resources and reasons to roll out 5G as fast as possible and light a fire under the ass of the wireless industry.
And that’s the reason I actually think this is good for consumers. Hear me out…
On a basic level, MORE competition is always the best thing for consumers. And taking out wireless industry from 4 carriers to 3 sounds like less competition… But when you really think about it, these two companies seem to actually be coming together for the right reasons. They’re quite literally putting their resources together to be able to be enable REAL competition in a much shorter amount of time. The fact that John Legere is heading the company has me confident that he’ll steer it in the right direction and do what’s best for consumers. He’s a crazy mother f***er and he has time after time changed the wireless industry. A lot of the changes that have happened in wireless throughout the last few years is because of him. Almost every decision he’s made for T-Mobile has caused a trickle down effect with every other mobile carrier.
So this is good for consumers. This is good for Sprint, because they wouldn’t have survived without this merger, and this is good for the industry. But, there’s actually a chance that it doesn’t happen.
While it’s true that they’ve agreed to merge, and that part of the battle is done, the deal still has to be approved by regulators.
They almost did this back in 2014, but scraped the plans because there was little chance that the deal would be approved by the Obama administration. For instance, back in 2011, AT&T attempted to buy T-Mobile but the FCC and Department of Justice said huh uh. And did not allow the acquisition to actually happen.
It was a different time back then, though - and quite a different situation, too… AT&T trying to buy T-Mobile in 2011 was more like a powerhouse trying to buy out another carrier to remove them as a competitor. Whereas, with this deal, T-Mobile is actually getting the most benefits here and this isn’t to remove competitors from the field, it’s quite literally to attempt to foster competition at a more substantial level.
So, will it be approved? I think so. But there’s always that chance that it won’t be. Either way, be sure to subscribe to the channel, if you haven’t already to stay updated on this story as well as get a daily dose of tech news and fart jokes.