A deal between Sprint and T-Mobile has often been mooted and it is fairly common knowledge that the companies have explored the idea of a merger on several occasions. Now it looks like the Sprint/T-Mobile union is ready to go ahead as the companies are at the stage of detailing an arrangement.
A merger between the third (Sprint) and fourth (T-Mobile) largest carriers in the United States would shake up the mobile industry and put real pressure on standalone giants Verizon (1st) and AT&T (2nd). Those two have already felt the seismic movements of T-Mobile over the last year as the company's uncarrier movement has changed the landscape of how carriers operate.
A merger with Sprint would give T-Mobile even more coverage and market clout, while Sprint will be able to align itself with a cool brand that is going places. Sprint has struggled in recent years to match the expansion of its rival, and a link with T-Mobile could give the company a much needed boost. The deal is at a stage where T-Mobile has been valued at $32 billion, or about $40 per share, but the two companies only have the broad outline of an accord.
Of course, any merger would have to pass through the FCC and many analysts believe a Sprint/T-Mobile deal is the only way any of the big four could merge. AT&T's attempt to purchase T-Mobile was quickly quashed, and any combination that involves Verizon or AT&T is likely to not get passed by the governing body. Sprint and T-Mobile is a much easier proposition for the FCC though and is unlikely to end in a monopoly, so as such it is predicted the merger would be allowed to go through.
Whether this prospected merger would be good for consumers is another matter, but we are unlikely to know until at least next year. That’s the sort of timeframe that would be needed if the deal is actually true.