After months of negotiation between Sprint and T-Mobile US Inc., the long-anticipated merger option fell through over the weekend, reported Bloomberg Technology. Now, the fourth-largest cable operator in the nation, French-owned Altice USA, has struck a deal with Sprint to begin offering wireless services.
As part of the agreement, Sprint will use Altice’s broadband infrastructure to strengthen its nationwide wireless network (via small cells) and Altice will use Sprint’s network to enter the wireless data and voice business, competing with giants like Verizon Communications Inc., AT&T Inc., and Comcast Corp. Altice currently has 4.9 million customers with plans to double its U.S. cable presence in the next five years on the heels of $26 billion in acquisitions, including purchases of Cablevision Systems and Suddenlink.
According to Sprint CEO Marcelo Claure, “As content and connectivity continue to converge, we believe this approach will be a model for future strategic arrangements across multiple industries including cable, tech, and others.”
From a timing standpoint, the wireless service could start in the second half of 2018, as ramping up the operation will require time and investment.
November 7, 2017