T-Mobile/Sprint Merger: A Sure Thing or Doomed to Failure?

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By Jake Saunders | 2Q 2018 | IN-5121


T-Mobile/Sprint Merger… Attractive on Paper


Over the weekend of April 28, 2018, T-Mobile and Sprint announced their plans to merge their operations. Between the two telcos there are considerable synergies. As of the end of 4Q 2017, T-Mobile had 17.1% of the 425 million subscriptions in the U.S. market, while Sprint secured 12.6% of the market. While there would be some subscriber churn during the merger, the merged telco would have approximately a 29.7% market share. Verizon Wireless has a 35.5% market share, while AT&T is just behind with 33.4%. It is not just the aggregate subscriptions that would make the merged T-Mobile/Sprint telco attractive but also the complementary spectrum holdings. Sprint holds almost 60 billion MHz-Pops of spectrum, while T-Mobile holds approximately 35 billion MHz pops of spectrum, but, crucially, Sprint holds a remarkable ~25 billion MHz pops of Educational Broadband Service (EBS) 2.5 GHz spectrum, while T-Mobile holds ~14 billion MHz pops of 600 MHz and 700 MHz spectrum. The merged T-Mobile/Sprint entity would become a serious heavyweight contender in t…

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