Mobile and Sprint reportedly not planning immediate asset sales in merger

Lloyd Doyle
October 17, 2017

Today's report notes that last week some U.S. Justice Department antitrust staff had doubts about this deal, but that a merger can only be reviewed once it has been officially agreed upon and announced.

The companies' announcement of a merger agreement, now expected to come either in late October or early November, will focus on the potential benefits of the deal for USA consumers, including the advancement of next-generation 5G wireless technology, which requires considerable investment, the sources added.

T-Mobile and Sprint have both declined to comment.

However, one source says that the two companies have not set a cap on what they would be willing to divest to satisfy regulators.

T-Mobile and Sprint now have the third and fourth most wireless network subscribers in the United States, both some way behind the leading two firms.

Since T-Mobile and Sprint neglected their former effort of combining in 2014 along with regulatory concerns, they now believe that the USA antitrust enforcement environment has become more promising.

The decision to not announce any planned asset liquidation alongside a merger is still understood to be a highly calculated move on the part of the two mobile service providers who are seeking to maximize the chances of their consolidation being approved by the federal government.

Although, it is possible that the negotiations will cease between T-Mobile and Sprint like in 2014. By raising the unlimited data cap, T-Mobile moved to cast its net wider so it could not only accommodate more of its own heavy data users but also discretely pitch to customers on rival networks.

Other reports by Iphone Fresh

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