T-Mobile and Sprint Get At It Again!

These companies are trying get to the top in the wireless industry!

Jared Arbolario, Staff Writer

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You’ve heard of all kinds of mergers: AT&T with Time Warner Cable, Disney with Fox, and even Amazon and Whole Foods. But now, on April 29, 2018, telecommunication providers, Sprint and T-Mobile are attempting to merge into a powerhouse of internet provision. For over 26 billion dollars, T-Mobile has finally considered buying Sprint after some unsuccessful attempts in the past.

Since the birth of the internet, groups and companies have found ways to make business and profit through providing the internet. These groups include AT&T, Verizon, Sprint, MetroPCS, Cricket, T-Mobile, and many more. But in the past decade, groups including AT&T and Verizon have been the biggest companies in this industry. But after April’s merger of the month, this might change.

Leading wireless providing companies

In the past, T-Mobile and Sprint have made several attempts to combine their companies, but have dropped their pursuit in the years 2011 and 2014. But now, they are trying again. Although this seems like a new hope for them again, they must still gain the approval of the FCC, Federal Communications Commision, and the Justice Department to continue their merge.

Justice Department (left) and Federal Communications Commision (right)

In an attempt to gain this approval, John Legere of T-Mobile, and Marcelo Claure of Sprint met with FCC Chairman, Ajit Pai (remember, the guy who helped shut net neutrality down?). Hoping to gain some ground, the pair claimed that with their combined resources, they could make the next-gen data, the 5G. No more details were provided about the meeting.

John Legere of T-Mobile (left), and Marcelo Claure of Sprint (right) coming to agreements

The merge of the 3rd and 4th wireless providers will also affect the competition with the other companies. With their combined amount of customers, they will reach around 100 million, topping AT&T’s 93 million, according to The Washington Post. Not only this, but they also claim that job openings will increase too.

According to the LA Times, it would be the “perfect competition.” What’s that? Well, the Times explains it as “the opposite of a monopoly.” They also add that it’s when “a market has a sufficient number of players to ensure the highest level of efficiency for both buyers and sellers.”

Legere and Claure state that with this “perfect competition,” consumers would receive both a better network and a faster and efficient innovation. But on the other hand, critics, including some Democratic lawmakers, claim that this would actually be closer to a monopoly than farther. The Hill states that the merge might “reduce competition in the wireless industry, driving up prices for consumers.”

Top four wireless providing companies

Though the FCC and the Justice Department administrations have changed since the two companies had tried to merge, there are still many that believe the merge will be dropped again. But others are convinced that Ajit Pai may allow the merge. But even if they do receive approval, what next? Will the wireless industry start improving, or will it become too expensive? How many will stay? If T-Mobile and Sprint merge, the wireless industry won’t be the same as it was before.

 

1 Comment

One Response to “T-Mobile and Sprint Get At It Again!”

  1. SpartanCreeper55 on May 18th, 2018 8:56 pm

    I kinda like both!

    [Reply]

If you want a picture to show with your comment, go get a gravatar.




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