Wednesday, April 14, 2021

T-mobile and Sprint Corporation Agree to merge in 26 billion dollars

Us wireless carrier T-mobile announced to buy sprint corporation in $26bn.Third and fourth largest companies in us telecoms industry combine to serve 127 million customers and employ more than 200,000 people.

The agreement is likely to attract customers with concerns over competition and fears it could mean higher prices for customers as a combined company would not have to offer many promotions lure to users.

President and chief executive of T-mobile US said that this combination will attract more customers and offer lower prices and more innovation and second to none network experience.

There are also concerns over employment the deal will cost at least 20,000 US jobs. But Mr. Legere said on Twitter: “From day one, the new T-Mobile will always have more US employees on payroll than both standalone companies. Last year we added 27,000 jobs associated with our growth, and there’s no reason we can’t grow at the same rate.

Japan’s SoftBank owns 84.7% of Sprint while Deutsche Telekom currently owns more than 63% of T-Mobile. The new business would be 42% owned by a geman company and Softbank own 27%. It is not the first time Sprint and T-Mobile have tried to merge. In 2014 failed because of the Obama administration, and last year because of disagreements over who would control the combined company.