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Introduction

After past failed attempts and several waves of rumors, in April 2018 T-Mobile and Sprint announced plans to merge into a new T-Mobile. But the deal would put consumers at risk of price increases.

Highlights

  • A merger of T-Mobile and Sprint would put the combined company within 2.9 percentage points of AT&T’s postpaid market share.
  • Together T-Mobile and Sprint have a strong spectrum portfolio of high, medium, and low bands.
  • Reducing the number of major mobile players from four to three could result in service price increases.

Features and Benefits

  • Learn how subscribers and market shares would change post-merger.
  • Learn about the improvements to financial metrics T-Mobile expects from the merger.
  • Assess how the merger could negatively affect consumers.

Key questions answered

  • How would the merger better position a combined company in 5G?
  • What scale advantages and synergies are expected from the merger?
  • What initial challenges could the merged company face?

Table of contents

Ovum view

  • Summary
  • A combined Sprint–T-Mobile becomes a better competitor for AT&T and Verizon
  • While the merged company wins, the consumer may lose
  • AT&T and Verizon likely to change strategy as a result

Appendix

  • Further reading
  • Author

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