Proposed Merger of T-Mobile and Sprint

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Proposed Merger of T-Mobile and Sprint

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Despite achieving substantial cost reductions and stabilizing its financial position, Sprint has not been able to turn the corner with... Read More...
Despite achieving substantial cost reductions and stabilizing its financial position, Sprint has not been able to turn the corner with respect to its core business challenges. Sprint tried a more localized approach in an attempt to drive growth, but continues to face declining subscribers and revenue. Sprint has attempted to position itself as a value leader with aggressive price promotions, but those efforts have not achieved sufficient growth or churn reduction to offset their cost. Given Sprint's network investment needs, negative network perception, and declining share and service revenues, it will continue to face substantial business challenges. T-Mobile cannot do the 5G strategy without Sprint, and Sprint cannot do it without T-Mobile. Read less

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Ajit Pai
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Sprint
Oct 16th, 2018
The proposed merger is necessary to accomplish a goal critical to enhancing consumer welfare in this country: the rapid and widespread deployment of 5G networks in a market structure that spurs rivals to invest in a huge increase in capacity, and, correspondingly, to drop tremendously the price of data per gigabyte. The transaction will also create a much stronger competitor with the scale and resources to disrupt AT&T and Verizon.

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