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T-Sprint Coming Soon…

T-Mobile and Sprint have been trying this for some time now and here we are again with the possibility that T-Mobile may actually merge with Sprint. A question to ask though is whether or not this will be good for the consumer. A lot of talk says it will not be good for the consumer. History also suggests this as not a good thing for consumers but the CEOs of T-Mobile and Sprint have been spotted in videos claiming it will be good for consumers as they make promises of lower prices, faster internet through 5G; and, increased competition.



A merger would reduce the number of major service providers from four to three leave them as a combined company, AT&T, and Verizon. I actually don’t know if any merger in any market that has led to benefit consumers. If anyone knows of any feel free to comment.

Well this merger has been announced on the 29th of April and CEO of T-Mobile John Legere will head the new company. The value of this merger…..unsure actually.  Sprint though was valued at $26 billion based the last closing price that I check up on, and T-Mobile was last valued at $55 billion.

Sprint and T-Mobile first discussed a merger in 2014 but scrapped it because of concerns about regulatory challenges from the Obama administration. Now the deal was blocked by regulators who determined that the market could support four major players, which creates competition.

Here we are with the announcement and fact still remains it will be hard to get these regulators to approve. I assume now that this is Trump’s administration the companies are expecting to have a better shot at the merger. It still will not be easy since their stock dropped after the announcement due to investor skepticism.

I will add though that the merger now comes at a good time because Sprint did have a good year last year. I will make it to the point by giving you the rundown.

  • Fiscal year 2017 postpaid phone net additions of 606,000
    • Third consecutive year of postpaid phone net additions
    • Highest postpaid phone gross additions in six years
    • Fiscal fourth quarter postpaid phone net additions of 55,000 marked the eleventh consecutive quarter of net additions
  • Fiscal year 2017 prepaid net additions of 363,000 compared to net losses of 1 million in the prior year
    • Prepaid net additions for the first time in three years
    • Prepaid churn of 4.58 percent was the lowest in three years
    • Fiscal fourth quarter prepaid net additions of 170,000
  • Fiscal year 2017 net income of $7.4 billion , operating income of $2.7 billion and Adjusted EBITDA* of $11.1 billion
    • Net income for the first time in 11 years, even when excluding $7.1 billion of one-time favorable impact from tax reform
    • Highest operating income in company history and highest Adjusted EBITDA* in 11 years
    • Fiscal fourth quarter net income of $69 million , operating income of $236 million , and Adjusted EBITDA* of $2.8 billion
  • Fiscal year 2017 net cash provided by operating activities of $10.1 billion and adjusted free cash flow* of $945 million
    • Second consecutive year of positive adjusted free cash flow*
  • Completed thousands of tri-band upgrades on macro sites, added thousands of outdoor small cells and deployed more than 200,000 Sprint Magic Boxes

If you are a Sprint customer this deal may be a good thing for you. If your service has been sub par this deal will lead to better service for you as T-Mobile’s coverage and performance have jumped farther ahead than Sprint’s.

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