Two years after reaching an agreement, T-Mobile and Sprint completed the merger process. The announcement comes after the US Department of Justice gave the green light to finalize the purchase in February, following a lawsuit against the merger of the two telecommunications operators. The new T-Mobile will be headed by Mike Sievert, former Chief Operating Oficer, since John Legere chose to step down.
In a press release, T-Mobile said that the merger with Sprint will allow the ambitious plans to be implemented with regard to the implementation of 5G in the United States. It is recalled that in December 2019, the operator guaranteed that it was the first to move forward with a mobile network of fifth generation of comprehensive coverage in the country, in a service that aims to cover 200 million people.
T-Mobile indicates that the combination of forces with Sprint will allow 14 times more network capacity to be increased in the next 6 years. The company promises that customers will have access to a fifth generation network 8 times faster. Still in the space of 6 years, T-Mobile claims that it will be able to provide 5G coverage to 99% of the North American population, not forgetting the country's rural areas.
To gain approval from the Department of Justice, the company now led by Mike Sievert has agreed to sell Boost Mobile and Virgin Mobile, formerly Sprint's property, Dish, which becomes the fourth largest telecommunications operator in the United States.
The completion of the purchase ends a process that has been waiting for about 6 years. In 2018, the first sign of progress was given after two failed attempts: the first in 2014, failed by the Obama administration, and the other in November 2017, due to a lack of understanding among the largest shareholders.
The $ 26 billion business advanced after Deutsche Telekom AG, the largest shareholder in T-Mobile, and the SoftBank group, which controls Sprint, agreed to a shareholder structure that would allow Deutsche Telekom to remain in the lead.