October 22, 2014

T-Mobile/Sprint Merger: New Owner, Virtually Same Coverage to Boot

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Recent rumors and reports, (on and off again since late December 2013), have stated time and time again that Sprint Communications’ major shareholder/owner, a Japanese company known as SoftBank, wants to buy T-Mobile USA. Deutsche Telekom, T-Mobile’s major shareholder/owner, wants out of the US market.

SoftBank CEO Masayoshi Son wants SoftBank to get their hands on T-Mobile. Now we’re not 100% sure that this means a merger as Sprint and T-Mobile could remain separate entities but reports are saying that the SoftBank/Deutsche Telekom agreement of T-Mobile US is a done deal. Don’t jump out of your seat quite yet – this deal still needs to pass FCC and Antitrust Commissions of the US Government.

Considering that both companies wern’t doing too well just last year, with T-Mobile gaining more subscribers very fast lately, these companies were in desperate need of a “save”. T-Mobile had Uncarrier to save them, and Sprint has SoftBank backing them financially. Analysts report that Sprint was very well a sinking ship before SoftBank.

Both companies have very similar coverage maps, with T-Mobile in the lead here yet again. We wouldn’t be too surprised if SoftBank wants to merge both Carriers. Note: This map does not include roaming coverage which covers most of the US for each carrier’s roaming agreements with 3rd Party Networks. If both carriers do merge, once network enhancements and compatibility adjustments are done, this is the network they’ll have to start before expansion, with little overlap.

 

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Credit: Wall Street Journal

Credit: Wall Street Journal

 

Many have said that such a merger would ruin T-Mobile, and from the looks of it, Sprint is loosing on all ends here.

Reportedly, SoftBank is possibly looking into renaming the merged company to SoftBank US, which just doesn’t have an appealing classic ring to it like Sprint or T-Mobile, huh?

Let us know what you think in the comments below.

Mosaik Solutions / TMoNews