T-Mobile and Sprint are closer than ever to a potential merger

T-Mobile and Sprint are closer than ever to a potential merger (Image source: Sprint)
T-Mobile and Sprint are closer than ever to a potential merger (Image source: Sprint)
The CDMA giant has only one-third the install base of the largest smartphone carrier in the U.S. at only 53 million users. Should it merge with T-Mobile, the combined user count would still be millions fewer than Verizon and AT&T, but the combined resources would allow Deutsche Telekom and SoftBank to better compete in the wake of 5G technology. Talks between T-Mobile and Sprint have been on and off for the past 4 years due to anti-trust concerns.

T-Mobile and Sprint are the third and fourth largest smartphone carriers, respectively, in the United States. Rumors of a potential merger between the two companies began as early as 2014 only for them to reignite early last year due to changes in U.S. regulations by the Trump administration. Now, sources close to Reuters are claiming that both Deutsche Telekom and SoftBank could close a deal as early as next week where the latter would retain the majority stake while allowing the former to consolidate the merger.

Even if T-Mobile and Sprint were to combine their resources, the total subscriber count of approximately 127 million would still be fewer than those of AT&T and Verizon who are sitting at 150 million and 141 million, respectively.

Sprint is the last major wireless carrier in the U.S. to run primarily on CDMA technology whereas most providers worldwide are GSM. As a result, most Sprint smartphones are generally incompatible with GSM providers and vice versa with a few exceptions. Reuters is citing unnamed analysts claiming that Sprint alone "lacks the scale needed" to pose a significant threat against larger competitors like AT&T and Verizon.

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> Notebook / Laptop Reviews and News > News > News Archive > Newsarchive 2018 04 > T-Mobile and Sprint are closer than ever to a potential merger
Allen Ngo, 2018-04-28 (Update: 2018-05-15)
Allen Ngo
Allen Ngo - US Editor in Chief
After graduating with a B.S. in environmental hydrodynamics from the University of California, I studied reactor physics to become licensed by the U.S. NRC to operate nuclear reactors. There's a striking level of appreciation you gain for everyday consumer electronics after working with modern nuclear reactivity systems astonishingly powered by computers from the 80s. When I'm not managing day-to-day activities and US review articles on Notebookcheck, you can catch me following the eSports scene and the latest gaming news.