Recently, Sprint and T-Mobile have merged their operations after two refusals.
John Legere, the CEO of T-Mobile, will be the head of the new merger. The new head expressed that they will provide the highest capacity network. He also announced US will be the first 5G provider.
In 2014, the first proposal of merger of both the companies was rejected because of some regulatory challenges, but now the companies are looking forward in 2018.
Andrew Schwartzman, an attorney who specializes in telecommunications and a professor at Georgetown Law, states that, “It will be difficult to convince the Justice Department that circumstances have changed so much that it’s necessary to go down to three providers, that’s the major hurdle that has to be confronted.”
Both the companies said, this is the way to stay in competition. Sprint agreed to be merged with T-Mobile and now both the companies are planning to invest $40 billion in the initial years of the business.
Gigi Sohn, counselor to the former Federal Communications Commission Chairman, Tom Wheeler said, “Consumers will be the losers if T-Mobile and Sprint are allowed to merge and both companies have been feisty competitors to the two biggest national mobile wireless carriers, Verizon and AT&T”.
However, T-Mobile’s parent company, Deutsche Telekom, would own 42% of the combined company, while Sprint’s parent company, a Japanese telecom titan Soft Bank Group, would own 27% and the remaining ownership would be public. Mike Sievert T-Mobile’s current chief operating officer will be president and COO of the new company.