Once again, there are talks of a merger with the nation’s number 3 and 4 wireless providers. What does this mean for customers and the future of providers?
T-Mobile and Sprint have considered combining forces before. In 2014, they came close to a merger but due to the Obama Administration’s policies at the time, the merger would had been declined. Now with a new administration under President Trump, the companies have a renewed interest in a merger.
If the companies were to merge, here’s what might likely happen to customers of Sprint and T-Mobile.
Customers of T-Mobile right now get free Netflix and MLB.TV mobile viewing, which would mean Sprint customers would get those same perks. T-Mobile customers in return would get access to Tidal, a company that Sprint acquired a 33% stake in January. All customers would see an increase in pricing.
However, according to the former FCC chairman Tom Wheeler and former assistant to attorney general for the Antitrust Division of the Department of Justice, Bill Baer, prices will rise for customers due to the lack of competition, which was why Softbank failed to acquire T-Mobile.
The two companies would most likely be able to get a deal approved by the Trump Administration as they are “more willing listeners.” Donna Hitscherich, a senior lecturer at Columbia Business School stated, “Obviously, they are not going to do the deal and hope to lose subscribers, unless maybe there is a swath of subscribers that are not as profitable as others.”
Shares in both companies were up more than 4% since the news of a merger came out on Tuesday.