Rejoice! Sprint gives up trying to buy T-MobileUS!
After months of rumors and talks of Sprint owner Softbank aiming to buy T-MobileUS, it seems that plans have finally fell through… and we couldn’t be happier!
Following Softbank’s $21.6Billion purchase of Sprint, the company had their eye on T-MobileUS, which isn’t surprising after the impressive growth the carrier saw over the past year. Talks with T-MobileUS owner, Deutsche Telekom, seemed to have been advancing and an agreement was reportedly made between the companies, bringing the possible merger closer to a reality. Now according to sources, the regulatory challenges that the buyout faced was too much hassle to get things moving any further.
Frankly I am relieved that this isn’t happening. As a long-time T-Mobile customer, and a previous Sprint user, I felt like T-Mobile’s network would have been tainted by Sprint’s questionable
choices everything. And while T-Mobile was never known for having the best network around, Sprint made very bad choices when it merged with Nextel and tried to integrate the network, as well as its decision to adopt WiMAX. At least now, T-Mobile is on a very good track with its UnCarrier initiative. They recently overtook Sprint as the 3rd largest carrier in terms of smartphone sales, and they’re rolling out their 4G LTE network so fast that they’re practically daring new potential customers to try out the network for a week for free, just to see how good it is. It’s this kind of momentum that we on Team Magenta were afraid would stop had the merger went through, and regulators were also concerned with how it would affect pricing among other things. Sure, the combined company would have been able to better take on the likes of AT&T and Verizon, but anything that Sprint touches seems to crumble and deteriorate, and T-Mobile seems capable of holding it’s own.
I can now breath easily knowing that T-MobileUS will remain to keep the wireless industry on their toes.
P.S. Sprint’s CEO Dan Hesse is reportedly to be replaced as early as tomorrow. So yeah, they’re kind of a mess right now.