T-Mobile and Sprint, two of the biggest carriers on the U.S. market, have been considering the possibility of a merger for a while now and it seems like it’s finally going to happen. Of course, this shouldn’t come as a surprise, since it’s a very natural and expected move, bringing advantages for both parts.
Even though this would make the networks bigger, it wouldn’t be such great news for anybody who wants to buy a wireless plan in the United States, but this shouldn’t make the companies reconsider.
It’s going to be a very cost-effective deal!
According to BGR, citing a report from Germany, Deutsche Telekom, the company who owns T-Mobile, is now working on finalizing the documents for merging with Sprint. Specifically, the details are now close to reaching the final steps, as T-Mobile and Sprint are considering an all-stock merger agreement, which would allow them to avoid the usual transaction costs, involving just an exchange of stock, instead of cash.
Of course, let’s not forget about the most important ‘consequence’ of this deal: the networks will eventually become as one, even if it will take a while. Let’s not forget that Sprint is a CDMA network, while T-Mobile is on GSM, so their technologies aren’t compatible. This means that CDMA will be removed, as well as some customer devices, before the networks could unify.
Improved coverage, but probably higher prices
In case you’re using one of these two networks, you should know that this is actually good news, as the coverage would become way better, while the 5G connectivity could become reality sooner than expected.
On the other side, reducing the number of major national carriers from four to three would reduce competition, so cheaper plans, as well as unlimited deals could soon become history. Sprint is currently the cheapest of the four and makes T-Mobile maintain lower prices than Verizon and AT&T. After the merger is finished, their rates might as well change a bit!