Every quarter, T-Mobile refuted Sprint’s basic argument for the merger by performing so well. Mobile industry analyst Chetan Sharma believes the two carriers will get together, but not while T-Mobile is growing so quickly.
With no merger possibilities on the horizon, Sprint and T-Mobile will have to look at a different acquisition target: spectrum. The 2015 incentive auction will be both carriers’ opportunity to get the low-band frequencies they lack.
The Brightstar founder and CEO will take over Sprint on August 11. The leadership shakeup spells the end of the tumultuous Hesse era at Sprint, but it could be an equally hectic era for Claure.
Sprint and T-Mobile were reportedly looking to circumvent corporate anti-collusion laws by forming a joint venture to bid in the upcoming incentive auction. The FCC, though, has gotten wise to their plans.
T-Mobile added 1.5 million new mobile connections in 2nd quarter, beating out its three larger rivals in growth, but it didn’t come close to matching the blowout performance of Q1.
No matter how bad an idea a Sprint-T-Mobile merger might be or how much regulatory scrutiny it might face, the two companies some committed to going through with it. They could announce as early as July.
Sprint’s new chairman claims merging Sprint and T-Mobile would allow him to challenge wireline ISPs. Today Sprint would charge a committed Netflix user $10,000 a month for broadband service. Son’s got a long way to go.
SoftBank CEO and Sprint Chairman Masayoshi Son argues a merged T-Mobile-Sprint would create more competition, not less. But the price war Son promises is already happening, and it’s being led by T-Mobile without Sprint’s help.