US approves merger of wireless operators T-Mobile, Sprint

US antitrust authorities on Friday approved the $26 billion merger of T-Mobile and Sprint in a deal that brings together the third- and fourth-largest wireless operators as the industry moves toward deployment of superfast 5G networks.

The deal aims to create a strong number three US operator to compete against sector leaders Verizon and AT&T and speed 5G deployment, but consumer groups have complained the deal would mean more concentration and higher prices.

It calls for Sprint to sell some of its prepaid wireless operations to satellite TV operator Dish Network, which would create its own telecom service.

"With this merger and accompanying divestiture, we are expanding output significantly by ensuring that large amounts of currently unused or underused spectrum are made available to American consumers in the form of high quality 5G networks," said Makan Delrahim, head of the Justice Department's Antitrust Division.

Delrahim added that the agreement "will provide Dish with the assets and transitional services required to become a facilities-based mobile network operator that can provide a full range of mobile wireless services nationwide."

T-Mobile, whose parent is German-based Deutsche Telekom, and Sprint, controlled by Japan's SoftBank, claim the merger will allow them to compete against their larger rivals.

"The T-Mobile and Sprint merger we announced last April will create a bigger and bolder competitor than ever before -- one that will deliver the most transformative 5G network in the country, lower prices, better quality, unmatched value and thousands of jobs," said T-Mobile chief executive John Legere, who will retain the CEO job upon completion of the merger.

"Today's results are a win-win for everyone involved. We cannot wait to get to work bringing this pro-consumer, pro-competition New T-Mobile 5G network to US customers from coast to coast."

Sprint executive chairman Marcelo Claure said the tie-up "will allow the US to fiercely compete for 5G leadership" and that the combined firm would build "one of the world's most advanced 5G networks, which will massively revolutionize the way consumers and businesses use their connected devices to enhance their daily lives."

No timetable for finalizing the merger, which was first announced more than a year ago, was given on Friday.

- Higher prices? -
Consumer groups and others have criticized the deal, arguing that too much concentration would lead to higher prices.

Earlier this year, 14 states sued to block the deal. The Justice Department said five states agreed to the settlement, which still faces approval in court.

Joshua Stager of the New America Foundation's Open Technology Institute said the deal falls short of retaining four "viable competitors" for the sector and said the effort to sell off assets to Dish was "needlessly convoluted."

"DOJ does not need to bend over backwards to fix a bad merger. It can simply block the deal," he said.

Derek Turner of the consumer group Free Press also denounced the deal.

"This arrangement does not offer cellphone users a viable fourth competitor in the wireless market," Turner said.

"This merger is bad for wireless users and can't be fixed."

Avery Gardiner, an antitrust fellow at the Center for Democracy & Technology, said the decision to approve the deal "goes against decades of settled principles" of competition.

"The wireless industry is already highly concentrated, and this deal is likely to result in higher prices, calcified cell service plans, and lower quality all around," she said.

But Jessica Melugin of the Competitive Enterprise Institute said the deal would be positive for consumers by allowing for three strong 5G operators.

"With the government out of the way, consumers will get the wireless innovations they deserve and that the unfettered marketplace can deliver," Melugin said.

Dish Network, which operates satellite and other pay TV systems, said it would deploy a "5G broadband network capable of serving 70 percent of the US population by June 2023."

Dish will get wireless spectrum to be divested in the deal as well as the prepaid Sprint operations Boost Mobile, Virgin Mobile, and Sprint Prepaid.

source: news.abs-cbn.com

T-Mobile, Sprint to merge: CEOs

WASHINGTON - US wireless operators Sprint and T-Mobile will form a new company and push development of a super-fast 5G network, the heads of both firms said Sunday.

The announcement came months after the 2 companies called off merger talks when they failed to clinch mutually agreeable terms.

"I'm excited to announce that @TMobile & @Sprint have reached an agreement to come together to form a new company -- a larger, stronger competitor that will be a force for positive change for all US consumers and businesses!" T-Mobile CEO John Legere announced as part of a series of tweets about the tie-up.

T-Mobile, a division of Germany's Deutsche Telekom, and Sprint -- a subsidiary of Japan's SoftBank -- are at present the third and fourth largest US wireless operators, respectively.

Together they would have about 131 million subscribers, virtually matching second-ranked AT&T and posing stiff competition to market leader Verizon Communications.

Sprint chief executive Marcelo Claure also used Twitter to announce "some incredibly exciting news - @Sprint and @TMobile are joining forces."

He said they will "combine to create the most disruptive U.S. carrier!"

In a video posted online the long-haired Legere and Claure, wearing a T-shirt, appeared side-by-side.

Legere said "the New @TMobile will be the ONLY company able to bring a broad & deep nationwide 5G network -- something no US wireless company could achieve alone in the critical early years of 5G."

In its first three years, the new firm will be able to invest around $40 billion, "nearly 50 percent more than both of us invested in the last three years," he said.

'20,000 LOST JOBS'

Legere announced that he would lead the new company as CEO, while T-Mobile's chief operating officer Mike Sievert would be president.

T-Mobile is one of the biggest earners for its German parent.

In 2017, it added 5.7 million net new customers compared with 8.2 million the previous year, but the hoped-for merger with Sprint fell through in November.

At that time, the Communication Workers of America union had warned that a merger would result in the loss of at least 20,000 US jobs through store closings and other consolidation, while also harming consumers.

The 2 firms had previously held talks in 2014 on a merger but ended discussions in the face of opposition from US regulators.

5G or fifth-generation wireless communication networks would enable services such as smart cities, remote surgery and driverless cars.

The networks would allow customers to experience video and virtual reality with greater ease.

Claure, who is also a partner in David Beckham's Miami Major League Soccer franchise, said "the difference between 4G and 5G is the difference between black-and-white TV and color TV."

The first commercial 5G roll-outs begin this year and next in the United States, Korea and Japan, but industry players have cautioned development of 5G still has a long way to go.

In February China's Huawei unveiled what it said is the world's first commercial chipset to meet the standards of 5G wireless networks.

An unusual move by US President Donald Trump earlier this year to block a proposed takeover of Qualcomm by a chip rival then based in Singapore highlighted growing concerns about the rise of Chinese competitors.

Trump's order made no mention of China, but a letter from the US Treasury Department warned that the mooted takeover by Broadcom might hurt US leadership in 5G.

5G will account for 14 percent of global wireless connections by 2025, according to GSMA, the global mobile operators association.

Deutsche Telekom CEO Timotheus Hoettges has estimated the cost of providing 5G networks in Europe alone will be €300-500 billion ($363-606 billion).

The telecoms industry will invest $275 billion in the United States to develop 5G networks there, Claure said at the Mobile World Congress in Barcelona in February.

source: news.abs-cbn.com

US mobile carriers Sprint, T-Mobile to merge: report

Japan's SoftBank has reached a broad accord to merge its US subsidiary Sprint with T-Mobile to create a rival to America's top two wireless carriers, a newspaper said Saturday.

SoftBank and German group Deutsche Telekom, which holds 64 percent of T-Mobile, are considering a stock swap for the deal, which could be announced as early as this month, the Nikkei daily said.

The two will also discuss details of the planned merger, including ownership ratios, the business daily said.


The Japanese telecom giant is also planning to begin procedures for the approval of the US Federal Communications Commission and the US Department of Justice, the report said.

Immediate confirmation of the news report was not available.

T-Mobile ranks third among US wireless carriers by subscribers, followed by Sprint in fourth place, the Nikkei said.

Together, the pair would have 131 million subscribers, which would see them virtually match second-ranked AT&T and pose stiff competition to market leader Verizon Communications, it said.

SoftBank has long sought to combine the two firms but appeared to abandon the plan due to likely opposition from US regulators.

But the prospects for consolidation among US carriers have brightened with the pro-deregulation stance of President Donald Trump, the Nikkei said.

SoftBank chief executive Masayoshi Son was among the first businessmen to meet Trump after his election victory last year.

SoftBank's founder pledged to invest $50 billion in business and job-creation in the United States, winning praise from Trump.

source: news.abs-cbn.com

Sprint to take remaining stake in Clearwire

Sprint Nextel is offering to buy the 49 percent of Clearwire that it doesn't already own for $2.1 billion.

Sprint Nextel Corp. said Thursday in a regulatory filing that its board reviewed a deal the day before that spells out specifics of the proposed transaction. The deal works out to $2.90 per share. Clearwire Corp. stock is up 27 cents, or 10 percent, to $3.02 in premarket trading.

Sprint uses Clearwire's network to provide "Sprint 4G," but it's building its own 4G network at the same time, and would like to see Clearwire upgrade its network to use a compatible technology. Clearwire is strapped financially, and lacks the funds for a comprehensive upgrade.

The deal was reported earlier this week by CNBC and The Wall Street Journal, citing unnamed sources.

source: thenewstribune.com

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