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Why has the merger dragged on?
- The investment originated from Softbank’s 2013 merger with Sprint, which later merged with T-Mobile in 2020.
- The whole purpose of this agreement is to create another nationwide carrier that could compete with the new T-Mobile, as well as with AT&T and Verizon.
- The former MetroPCS was taken over by T-Mobile in 2013, the new company formed T-Mobile US and currently continues to offer prepaid wireless services under the Metro by T-Mobile brand.
- The combined portfolio of radio airwaves provides superior coverage in terms of both speed and capacity, particularly in rural areas.
- Fortunately, popular phones like some Samsung models and the iPhones on Sprint can run on T-Mobile.
The combined assets of T-Mobile and Sprint are so complementary that the merger is expected to unlock at least $43 billion in synergies for all shareholders. The vast majority of synergies in this deal come from combining networks, such as reducing redundant cell sites and rapidly deploying spectrum and other technologies more efficiently. The company plans to deliver a seamless, high-quality integration, just as it did with its MetroPCS merger, which was completed a year earlier than planned. These synergies and our combined scale are expected to put New T-Mobile in an enhanced financial position, including significant free-cash flow, margin expansion and strong, flexible capital structure. To address America’s urgent needs around COVID-19, T-Mobile fast-tracked its groundbreaking, lowest-priced plan EVER, launched on March 23. With 14 times more total capacity in the next six years than T-Mobile has today, customers won’t have to choose between great service or low prices — they’ll get both.
Prepaid mobile phone & data
The attorneys general decided against appealing the District Court decision, so here we are. T-Mobile US employees and two labor unions have led multiple unionization attempts beginning as early as 2001. In September 2010, the company launched “Kids are free till 2012” for family lines.
Merger of Sprint Corporation and T-Mobile US
A share repurchase program would increase the percentage of ownership for the big three investors without them lifting a finger. Japanese holding company Softbank owns about 61 million T-Mobile shares, or 5% of the company. The investment originated from Softbank’s 2013 merger with Sprint, which later merged with T-Mobile in 2020. Later in 2021, Softbank sold most of its shares to Deutsche Telekom but retained its 5% allocation. One of the critical parts of T-Mobile and Sprint’s argument for merging is the move to 5G. The companies say neither can build the 5G network they want without a combination, though that hardly would’ve been the rhetoric had you asked either side before this deal was announced.
T-Mobile’s network provides coverage in the continental United States, Hawaii, Puerto Rico, and the U.S. We already have the largest 5G network, and within the next 6 years we’ll provide 5G to 99% of Americans. Morrison & Foerster LLP provided legal counsel to Sprint and SoftBank. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services. T-Mobile’s net income and cash flow profile should increase over the next few years. In the meantime, management will be tasked with allocating the extra cash in the best interest of extraordinary shareholders.
Planned acquisition of UScellular assets
T-Mobile has roaming arrangements with a number of national and regional mobile network operators, including AT&T Mobility. Since launching Project 10Million last year, we’ve been using the power of our biggest and best network ever to impact the lives of students and families by helping bridge the digital divide and supporting hybrid learning with free internet and mobile hotspots for 10 million eligible households. T-Mobile management has mentioned the possibility of repurchasing $60 billion of its shares between 2023 and 2025. Since T-Mobile’s market cap is $180 billion and Deutsche owns roughly half, or $90 billion, a $60 billion share repurchase plan could retire two-thirds of the remaining $90 billion in free-floating shares.
Low-income people who qualify for the services are provided a free phone, free monthly data and minutes, and unlimited texting. In addition, the company offers services, devices, and accessories under the T-Mobile and Metro by T-Mobile brands through its owned and operated retail stores, T-Mobile app and customer care channels, and its websites. Strong, dependable network connectivity has never been more critical to customers or to the country. Now the New T-Mobile will focus on creating a much-needed transformational nationwide 5G network, driving innovation in the U.S. and bringing wireless access to people throughout the country.
This court battle was a major hurdle standing in the way of the merger. The Feb. 11 District Court decision helped clear the path to allow the companies to complete the merger. Alongside the T-Mobile Magenta family of plans are the specialized plans offered to Military personnel, First Responders, and seniors age 55 and up. VoiceStream Wireless (T-Mobile’s predecessor) first started building out its cellular network in 1994. This initial 2G network utilized the GSM standard was first turned on in Honolulu and Salt Lake City by 1996. Through strategic acquisitions and spectrum purchases, the network steadily expanded its geographic reach and technological capabilities.
The companies say it would take about three years to migrate customers over to the T-Mobile network. Though both companies support LTE, T-Mobile’s older network is based on a technology called GSM, and Sprint’s is based on CDMA — two incompatible networks. “We’ve all seen what happens when markets become more concentrated after a merger like this one,” Rosenworcel said. “In the airline industry, it brought us baggage fees and smaller seats. In the pharmaceutical industry, it led to a handful of drug companies raising the prices of lifesaving medications. There’s no reason to think this time will be different.” After nearly two years of waiting to close their $26.5 billion merger, T-Mobile and Sprint have crossed the finish line and completed its quest to combine the third- and fourth-largest national wireless carriers.
Prior to this deal, Dish had until March 2020 to utilize the airwaves or risk losing its licenses. But as part of the new agreement, the company gets an extension to June 2023, by which time it pledges to have a 5G network of its own that’ll cover 70% of the US population. The company has spent years accumulating spectrum — radio airwaves — that could be used to build a wireless network.
Sprint’s network was decommissioned and integrated into T-Mobile’s network. The CDMA network was completely shut down on May 31, 2022[131][132][133] and the LTE network was discontinued on June 30, 2022.[55] Sprint used bands 25, 26 and 41 to provide LTE coverage and used band n41 for NR coverage. We’re on this journey because we believe it will be better for customers. Through the years, we’ve taken major strides to answer the needs of our customers and we won’t stop. PJT Partners and Goldman Sachs acted as financial advisors to T-Mobile.
By September 8, 2008, SunCom’s operations were integrated with those of the company. The acquisition added SunCom’s 1.1 million customers to the company’s customer base and expanded the company’s network coverage to include southern Virginia, North Carolina, South Carolina, eastern Tennessee, northeastern Georgia, Puerto Rico and the U.S. Following the Suncom acquisition, T-Mobile possessed native network presence in all the major metro areas in the United States.
Founded in 2016, Tello Mobile now uses the T-Mobile network to provide MVNO talk, text, and data to its customers. Tello originally used the Sprint network, but transitioned to the T-Mobile network after the T-Mobile and Sprint merger. The company operates a nationwide Wi-Fi Internet access network under the T-Mobile HotSpots brand. The T-Mobile HotSpots network consists of thousands of Wi-Fi access points installed in businesses, hotels, and airports throughout the U.S. The following chart describes radio frequency spectrum bands accessible by the company’s customers.
Coverage not available in some areas and may be impacted by emergencies; check your response area. We’ll continue our commitment to transforming wireless for good and offering great deals and plan benefits that put customers first. Sprint Corporation and T-Mobile US merged in 2020 in an all shares deal for $26 billion.
Wachtell, Lipton, Rosen & Katz provided legal counsel to T-Mobile and Deutsche Telekom. Evercore acted as financial advisor to the committee of independent directors of T-Mobile and Latham & Watkins provided legal counsel to the committee of independent directors. Effective at the beginning of today’s trading session, T-Mobile will trade on the NASDAQ on a combined basis under the ticker symbol “TMUS.” The Sprint shares will no longer trade on the New York Stock Exchange. That might be a good deal for a fast-growing company with the potential for massive share repurchases over the next few years. So it’s easy to see why seasoned telecom investors like Softbank and Deutsche Telekom like the stock.
Specifically, as part of the FCC’s deal, the new T-Mobile would meet several 5G network coverage benchmarks. For instance, within three years the company will provide 5G service to 97% of the US population, and within six years 99%. For rural Americans, the coverage would be 85% within three years, and 90% within six. In May 2019, T-Mobile negotiated a deal with the FCC that promised 5G coverage to nearly all of the US. It included build-out requirements to ensure 5G deployment in rural communities, a promise to offer wireless home broadband that could substitute for a wireline, and the divestiture of Boost Mobile.
T-Mobile has since discontinued this plan, but it has upgraded the Magenta plan with 100 GB of premium data, while the high-speed hotspot data was increased to 5 GB. On June 29, 2010, the company launched voice service in the Gulf of Mexico on GSM via roaming agreement through Broadpoint. T-Mobile USA was scheduled to launch data service in Fall 2010.[100] Also in 2010, T-Mobile US became a member of the FreeMove alliance.