Technology Analyst Jeff Kagan Weighs in on Sprint T-Mobile Merger Possibility

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The possibility of Sprint and T-Mobile merging raises a lot of questions from the major tower companies to the tower technicians; everyone is wondering how this might affect them. “If Sprint does acquire T-Mobile, it would transform them into a larger and stronger number three competitor to both AT&T Mobility and Verizon Wireless, virtually overnight,” says Tech analyst Jeff Kagan. “Whether the US Government would allow it is the question.” Because AT&T Mobility tried to acquire T-Mobile two years ago and the government said “no” in order to keep four competitors in the industry, many believe that this will be the outcome of Sprint seeking to acquire T-Mobile. While Sprint and T-Mobile are the smaller of the four major carriers, they have been working hard to grow their companies. “During the last year T-Mobile got a new CEO and is breathing life into its sails,” says Kagan. “At that time I asked if it would be possible for Sprint to merge with T-Mobile. At the time these were two, smaller and weaker companies. However things have been changing. Softbank acquired most of Sprint and is working to update speeds of their wireless data network. However Softbank has a larger appetite in the US market,” says Kagan. “I think Softbank and Sprint would love to sink their teeth into T-Mobile. It would transform them into a much larger and much stronger third place competitor, especially since they are both reinventing themselves as we speak,” says Kagan.

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