The two companies are reportedly in merger talks. Sprint and T-Mobile's CEOs are at it again. This time the Twitter battle was sparked by a RootMetrics report comparing the top four U.S. carriers. The stock prices of T-Mobile and Sprint soared Tuesday following a Wall Street Journal report that the nation's third and fourth largest wireless carrier have rekindled merger talks. Sprint's shares rose more than 20% in early afternoon trading; T-Mobile's stock climbed more than 6%.
Here's how this mega-merger could be good or bad for long-time customers. T-Mobile and Sprint announced on April 29, 2018 that they reached an agreement to combine into a new company that would reshape the U.S. wireless landscape by reducing it to three major cellphone providers. The deal would help the companies slash costs and could make them a stronger competitor to the larger AT&T and Verizon. In this April 27, 2010 file photo, a woman using a cell phone walks past T-Mobile and Sprint stores in New York. The proposed union of Sprint and T-Mobile is no merger of equals: Over the last few years, T-Mobile's coverage and performance have leapt much farther ahead than Sprint's.
T-Mobile President and CEO John Legere, center, along with T-Mobile Chief Operating Officer Mike Sievert, left, and T-Mobile CFO Braxton Carter, right. NEW YORK--Speculation that T-Mobile and Sprint might pair up is mounting thanks to comments from both wireless carriers' executives, raising questions about what such a merger might mean for consumers who have largely benefited from the fierce competition that has come to define the business. The nation's third- and fourth-largest wireless carriers--and/or parent companies Deutsch Telekom and SoftBank-- are already engaged in such informal discussions, according to a report in Bloomberg. Mobile users have been the beneficiaries of price wars surrounding "unlimited" data plans, among other goodies competition has thrust their way. Prices for various plans could rise, or at least not fall as much, if a deal goes through.
Sprint and T-Mobile are officially seeking to merge. If the deal is approved, the resulting company would be the nation's second-biggest wireless carrier after Verizon, controlling roughly 100 million customers. While the merger could put the companies in a stronger position to take on AT&T and Verizon, it would also eliminate a competitor from the wireless industry. That might not sit well with some policymakers, who say U.S. businesses have grown too concentrated in recent years. What could the merger mean for competition -- and your pocketbook?