Not long ago, there was a major reorganization in the US telecommunications market. T-Mobile, the third-ranked company, and Sprint, the fourth-ranked company, announced a merger (some media called T-Mobile for acquisitions), preparing to build a more competitive Telecom giant. According to the latest news from foreign media, the two companies formally submitted a merger plan to the US government a few days ago, and stated that they would invest US $ 40 billion to build a 5G network and bring a disruption to the US communications market.
If the merger plan of T-Mobile and Sprint is successful, the US telecommunications market will have a three-nation romance pattern, respectively, the current two giants AT & T, Verizon and the newly merged third company. In other words, the pattern of the US telecommunications market will be very similar to the Chinese market.
According to the report of the US technology news website AppleInsider, Sprint and T-Mobile have officially submitted a merger plan and application to the Federal Communications Commission (FCC), the US government's regulatory agency in charge of the telecommunications market.
Both parties stated that the new company after the merger will be named "New T-Mobile". Both parties stated that the combined new company will invest $ 40 billion to build a world-class 5G communications network in the United States.
The two companies said that the merger plan will help the U.S. telecommunications market to compete and enhance the welfare of typical consumers. In addition, as the U.S. telecommunications industry begins to build 5G networks, the merger of Sprint and T-Mobile is even more necessary. The future competitive landscape of the telecommunications market will lead to a significant drop in traffic prices.
The two companies said that the merged new company will bring a disruption to the US mobile communications market, while ensuring that the world's trend towards 5G communications networks puts the US in a leading position.
It is said that after the 5G communication network matures, it will become another competition object for current home broadband.
In April, the two companies announced a merger plan. The transaction size of the merger plan was approximately US $ 26 billion. The leader of "New T-Mobile" will be the current CEO of T-Mobile, John Legere.
In fact, many media called this event T-Mobile's acquisition of Sprint, which was also a major setback for Softbank Group and Sun Zhengyi in the US market.
Softbank and Sun Zhengyi achieved great success in the Japanese telecommunications market, and subsequently invested heavily to acquire the third-ranked Sprint company at the time, hoping to "spoil" the US telecommunications market again. But what Sun Zhengyi didn't expect was that Sprint's operation was in trouble, the market ranking fell behind to third place, the company's users were lost, and it was also caught in huge debts.
The past merger talks between the two companies failed due to the domination of dominance. And at the beginning of this year, the two sides started the merger negotiations again. SoftBank Group and Sun Zhengyi made a compromise and lost the dominance of the new company after the merger. T-Mobile's parent company Deutsche Telekom will become the dominant shareholder of the new company.
According to US media, the success of the merger negotiations between T-Mobile and Sprint again was due to some new changes in the US telecommunications market. Faced with the arrival of 5G networks, the two giants AT & T and Verizon have announced ambitious plans for 5G network construction, and said they will launch 5G communication services in multiple cities in the United States this year.
According to reports, T-Mobile and Sprint are fully aware that if they continue to act as two small-scale "Lao San" and "Lao Si", it will be more difficult to survive in the background of 5G networks in the future.
It should be pointed out that in the US telecommunications market, T-Mobile has always been a “spoiler†role for challenging giants. The company has launched many subversive tariff plans, including unlimited communication packages, and massive tariff reductions. In the face of T-Mobile's innovative package, AT & T and Verizon followed up, resulting in a gradual decline in tariffs in the US telecommunications market and improved consumer welfare.
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