T-Mobile closed its $23 billion acquisition of Sprint on the morning of April 1, 2020, the final step in a two-year effort to merge the two companies. The company also replaced long-time CEO John Legere with his hand-picked successor Mike Sievert. T-Mobile now takes its place as an equal among the three major wireless carriers in the US. The deal was the subject of protracted legal actions, opposition by state attorneys general, lobbying before the FCC and the Justice Department and other actions as consumer groups tried to find a way to block it.
The merger required Sprint to divest itself of Boost Mobile and the remains of Virgin Mobile, and it required a number of commitments by T-Mobile not to raise prices for three years, and to provide widespread wireless broadband. T-Mobile also had to help Dish Networks become a competitive wireless company as a way to quell fears that the merger would leave the US with only three competitors instead of four.
“I always thought it made a lot of sense,” said Larry Downes, project director for the Georgetown Center for Business and Public Policy. “Sprint was not a viable competitor,” Downes added. “My view was that it takes us from two to three viable competitors.”
“It’s going to change the competitive dynamic,” Downes said, “particularly in the 5G sense. Under new leadership with new assets and new customers T-Mobile will become an aggressive competitor.”
Continue reading T-Mobile Joins The Ranks Of Major Carriers As Sprint Acquisition Closes on Forbes
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