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T-Mobile and Sprint are in the final stages of closing their $26.5 billion merger but must first negotiate a tricky court case with a group of disgruntled States
US carrier Sprint has posted a net loss of $274 million for the quarter, as the company continues to await final approval for its proposed merger with T-Mobile.
While the proposed $26.5 billion deal is a merging of the two companies, the new entity – dubbed new T-Mobile and with T-Mobile’s current CEO John Legere as its chief exec – will retain a great deal more of the Magenta than of Sprint’s iconic yellow branding.
While the deal has now received regulatory approval from both the FCC and the Department of Justice, the pair face a protracted legal battle with a number of US States, in order to get the deal finalised.
As the final approval process drags on, Sprint has seen its net losses grow and its subscriber base shrink.
"I am proud of the resiliency of the Sprint team as they work to deliver results in a challenging environment," said Sprint CEO Michel Combes.
"However, I remain convinced that merging with T-Mobile and building one of the world’s most advanced 5G networks is the best outcome for all consumers, employees, and shareholders," he added.
Despite the tough financials, there were also some positive announcements in the report. Sprint has now deployed 2.5GHz spectrum at approximately 85 per cent of its macro sites, helping to boost network coverage. It is also continuing the rollout of Massive MIMO technology across its network to support 5G and LTE services.
T-Mobile and Sprint’s court case with a group of States who oppose the deal is expected to get under way in early December.
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