Sprint and T-Mobile were expected to formally announce plans to merge into a single carrier by the end of October, but suddenly those plans seem to be off the table. It’s unclear exactly what went wrong, other than potential complications from the companies not wanting to sell their assets, but the news is kind of a shock. Adding to this, both companies released Q3 earnings last week, but without customary live calls or a Q&A session. Many speculated that the briefer than usual releases pointed to an imminent merger announcement.
Sprint’s parent company, SoftBank, had a board meeting over the weekend and made the last minute decision to not give up control to Deutsche Telekom, T-Mobile’s parent company. The proposal had T-Mobile taking over Sprint. It’s unknown why SoftBank had a sudden change of heart, but they could officially announce that the deal is off as early as later today or tomorrow.
The result of this means that the US will maintain four major wireless carriers (Verizon, AT&T, Sprint and T-Mobile). Many believe that this is best, keeping a healthy number of competitive companies, but it puts Sprint back at the bottom of the barrel. T-Mobile has invested wisely in it’s wireless infrastructure and has continuously added subscribers at the expense of others. Sprint is considered to have the worst network by a sizable margin and will have to get serious about improving it, or they will simply fall even farther behind.
Source: Droid Life