The plan of merging Sprint and T-Mobile into a single service provider has caused an uproar in the USA. On April 2019, the giant companies announced that they are going to combine their services to form a larger company which will remain to be named as T-Mobile since the company is initially larger than the other.
This petition for merger has brought controversy and scrutiny since the day that it was announced. Yet, it has now been approved by the United States Department of Justice. It costed an astonishing 26 billion dollars which is just a tiny sacrifice for the two giants in order to gain more.
The Cause for Merging
The main reason for the merger was to increase both companies chance against the top two service providers, namely AT&T and Verizon. However, it seems that the new company still falls short of subscribers. Having only garnered 100 million subscribers, it still has a long way to go as compared to Verizon’s 118 million and AT&T’s whopping 150 million subscribers. It also intends to rapidly propagate a 5G network connection all over the region for its subscribers to experience a faster internet connection.
Obstacles in Merging
Aside from the billion dollar merger approval, a slew of lawsuits are also doing their best to hinder the merger.
The main argument for the anti-merging lawsuit campaign is the increasing chance of these companies to monopolize the industry.
With less competition, the consumers are left with fewer alternatives and these companies could easily increase their prices in order to gain more money.
Currently, legal proceedings are still being held in New York and California. While these onslaught of lawsuits to restrain the merger is still being decided upon, the people have equally divided opinions on the subject matter. But one thing seems to be clear, both these companies are willing to do anything for this merger to happen.