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Sprint would fold into T-Mobile if merger goes ahead


News by Luke Jones on Sunday June 15, 2014.

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More details surrounding the proposed merger between T-Mobile and Sprint are emerging as reports of the deal being struck pick up pace. The long mooted link up between the third and fourth largest carriers in the US is apparently close to being a done deal, but it will not be finalized until 2015. Analysts and the tech community alike have been debating which company will fold into the other, will Sprint continue or will it be T-Mobile?

It now seems that the Sprint brand would cease existence, at least according to CNBC's David Faber, allowing T-Mobile to be the umbrella for both companies. Sprint CEO Dan Hesse would step away as he has indicated he wants to, while T-Mobile CEO John Legere would become head of the newly paired company. Of course, Legere has won plenty of good faith with his aggressive strategies and he is seen as the key man to drive the T-Mobile brand further.

It would make perfect sense if T-Mobile does become the banner brand for the merger; just one look at the history of the companies over the last two years would show that. T-Mobile has gone from strength to strength with its Uncarrier program, an ethos that has shaken up the mobile industry in the US by targeting other carriers and putting the customer first. T-Mobile has also improved its 4G connection speeds vastly, usurping AT&T last week to become the second fastest 4G network in the US.

Sprint in contrast lags far behind its main rivals in 4G network, while the company has garnered plenty of negative press for high costs and poor market strategy. T-Mobile will be a winner even if the merger falls through. Faber added that is the deal collapses for some reason (such as the government axing it), Sprint will have to pay T-Mobile $2 billion, so whatever way we see it John Legere and his company is in a great position.

source: Talk Android

 
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Luke Jones
Luke Jones is the Managing Editor at MobileBurn.com and is the person you need to speak to about the content on the site. Luke studied creative writing at Glamorgan University before carving out a reputation as a freelance tech writer. He settled here at MobileBurn, where he reviews devices and contributes to the news.

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