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m3n4.net December 17, 2018


Mobile reportedly makes Sprint new offer in an effort to save merger

06 November 2017, 12:21 | Antoinette Holland

Mobile reportedly makes Sprint new offer in an effort to save merger

A woman talks on her phone as she walks past T-mobile and Sprint wireless stores in New York

T-Mobile and Sprint are the US' third- and fourth-largest wireless carriers, respectively, but they are significantly smaller than AT&T and Verizon, who effectively have a duopoly over United States wireless service. The decision was made due to both parties being "unable to find mutually agreeable terms".

Sprint CEO Marcelo Claure was also of the same opinion and saw the benefits of a combined operation with T-Mobile even if no deal has been ultimately reached.

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Although it remains unclear how the merger talks collapsed, it is believed that the two network giants were in disagreement as to which party would inherit majority control of the merged entity.

It's official: Sprint and T-Mobile have called off talks about a potential merger following months of negotiations that, at one point, likely had investors fairly excited about the potential of a huge new rival to AT&T, the nation's second-largest carrier.

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Deutsche Telekom, which has toyed with options for its US business for years, put a fearless face on the unravelling of the deal on Saturday night, saying T-Mobile would continue its successful growth strategy. One source stated that Claure was told neither Deutsche Telekom nor T-Mobile wants to lose the merger deal, and as a result Sprint's board held its own meeting yesterday. Sprint has been struggling to stem the loss of subscribers.

"To really take the kind of next step from a business that has been stabilized to a business that has been growing is going to require a new more intense investment phase", Mark Stodden, telecom analyst at Moody's, said about Sprint. At this point, talk of a merger is between Softbank and Charter, rather than having direct involvement with Sprint. T-Mobile, controlled by Germany's Deutsche Telekom which owns roughly 65 percent of it, became the first major carrier to eliminate two-year contracts, a shift quickly embraced by consumers and copied by competitors.

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Both companies had expressed interest in a tie-up this year.



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