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The newly formed entity will boast close to 120 million customers across the US
T-Mobile has agreed a merger with its key competitor, Sprint, valued at over $26 billion, following a week of mounting speculation in the press.
The deal will see the US’ third and fourth biggest network operators combine to form a company capable of challenging Verizon and AT&T for the US top spot.
“This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own,” said John Legere. “As industry lines blur and we enter the 5G era, consumers and businesses need a company with the disruptive culture and capabilities to force positive change on their behalf.”
The newly formed entity will continue under the T-Mobile brand, and will boast nearly 120 million customers across the US. Marcelo Claure, current chief executive officer of Sprint, will serve on the board of the newly formed company.
“The combination of these two dynamic companies can only benefit the U.S. consumer. Both Sprint and T-Mobile have similar DNA and have eliminated confusing rate plans, converging into one rate plan: Unlimited,” said Marcelo Claure.
“We intend to bring this same competitive disruption as we look to build the world’s best 5G network that will make the U.S. a hotbed for innovation and will redefine the way consumers live and work across the U.S., including in rural America. As we do this, we will force our competitors to follow suit, as they always do, which will benefit the entire country. I am confident this combination will spur job creation and ensure opportunities for Sprint employees as part of a larger, stronger combined organization, and I am thrilled that Kansas City will be a second headquarters for the merged company,” he added.
