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Will there be a Sprint and T-mobile Merger

Sprint And T-mobile Merger

Sprint and T-Mobile Merger Explained

Soon we may be seeing a Sprint and T-mobile Merger happening. This is something the companies have both been proposing since 2014. Only to be told no by the Justice Department’s antitrust Division and the Federal Communications Commission. The argument was that allowing a Sprint and T-mobile Merger would lessen the competition and would have a bad outcome for consumers.

Both companies have responded to this by saying their plans to have a  Sprint and T-mobile Merger would be pro-competitive, by creating a stronger competitor to Verizon and AT&T. The two biggest companies in the market today.

How do they claim to have stronger competition?

Their argument is mainly that a Sprint and T-mobile Merger would create a 3rd major competitor to Verizon and AT&T. They claim that 4 major companies don’t really exist. Claiming that there’s really A duopoly with Verizon and AT&T. Letting Sprint and T-mobile merger continue, they say this will allow them to combat the two major companies instead.

Verizon and AT&T together cover 68 percent of the market share when they first started to push for a Sprint and T-Mobile Merger. Since that start T-mobile’s growth went from 15 percent to 17 percent. Those extra percentage points came from the expense of Sprint, since they went from 16 percent growth to 13 percent now.

Technology analyst Ben Thompson gives his 2 cents

He stated on his newsletter that allowing a Sprint and T-mobile merger would help build 5G and offer a third competitor to the two major wireless companies. He argues that the tactics Sprint is being forced to use is bad for long term business. Sprint has to lower its prices in order to appeal to new customers. While this is going on T-mobile also can’t work on new technology with a similar business plan. While they struggle the big two companies, Verizon and AT&T are already working on bringing in new technology. Leaving the two smaller companies behind even further. He argues a Sprint and T-Mobile merger would allow them to combined and afford to provide a third option in the future.

Does Sprint and T-mobile comptition matter at all?

T-mobiles moves have mainly focused on aggressive pricing. Cutting prices as low as possible has mainly only hurt Sprint at the end of the day. Everyone’s gaining growth while sprint is only losing growth. However Verizon and AT&T are much farther ahead. Since T-Mobile is only really taking from Sprint, a Sprint and T-mobile merger would be a perfect chance to team up and finally give some competition to the big two companies. This will allow them to turn all sprint stores into the new merged company store. Closing any locations that are not needed. This would allow them to reduce back-office headcount and possibly even securing some efficiencies on marketing and deals with suppliers. This will also now force Verizon and AT&T to match T-mobiles price cuts in order to keep up with them instead.

Verizon and AT&T essentially the same company

While there’s a fight for a Sprint and T-mobile merger, Verizon and AT&T may essentially be one company themselves. This big issue is that they are mostly owned by the same people. Verizon is the corporate descendant of Bell Atlantic. While AT&T is the descendant of Southwestern Bell, Both of these companies were spun off from the old AT&T monopoly when it was broke up a generation ago. Another issue is they are primarily owned by institutional shareholders. Instead of founders or venture capitalists.

To get even more specific, the three largest shareholders in Verizon are, Vanguard, Blackrock, and also State Street. Now if we look at who are the three largest shareholders in AT&T, you may see a pattern. Theirs are Vanguard, Blackrock and State Street. There’s a lot of strange connections like this. This is not a conspiracy either, this is known facts available to the public.

Hit with a delay

While the fight for a Sprint and T-mobile merger continues, it has been hit with a delay. The CEO of T-mobile (John Legere) and the CEO of Sprint (Marcelo Claure) have both vowed to provide lower price options for customers. And argued that joining forces will increase competition in the telcom marketplace. Stating that they need each other for a 5G service rollout. Despite all of that the FCC state in a letter that it was pausing the informal 180-day transaction shot clock, solely to review the newly submitted materials. They want to take a closer look and make sure there isn’t anything bad going on.

So we don’t know yet if this Sprint and T-Mobile Merger will happen. Least not for now, once the FCC makes their decision that will let us know if we’ll see a stronger and more power T-Mobile in the future to give the big two Verizon and AT&T a run for their money.

What phones do we buy?

Below is a list of phones that we regularly buy from customers. Take a look to see if your phone is on the list and we can work out the details with you. If you don’t see your phone on this list, you can bring it in regardless, then we’ll see if we can still help give you cash for your phone today.

Apple devices we buy locally in Tucson

  • iPhone 6s
  • iPhone 6s Plus
  • iPhone 7
  • iPhone 7 Plus
  • iPhone 8
  • iPhone 8 Plus
  • iPhone X

Android devices we buy locally in Tucson

  • Galaxy S6
  • Galaxy S6 Edge
  • Galaxy S7
  • Galaxy S7 Edge
  • Galaxy S8
  • Galaxy S8+
  • Galaxy S9
  • Galaxy S9+

Quik Fix Phone Repair, Store Locations

 

Store – 2843 N. Campbell Ave Tucson, AZ 85719
Office Phone – (520) 850-6637
Monday – Saturday – 9:00am – 7:00pm
Sunday – 10:00am – 5:00pm

South Tucson Location
Store – 702 W Irvington Rd #140, Tucson, AZ 85714
Office Phone – (520) 463-7044
Monday-Saturday – 9:00am – 7:00pm
Sunday – 10:00am – 5:00pm

East Tucson Location
Store – 245 S Wilmot Rd #155, Tucson, AZ 85711
Office Phone – (520) 448-4883
Monday-Saturday – 9:00am – 7:00pm
Sunday – 10:00am – 5:00pm

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