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Published: Sun, November 05, 2017
Economy | By Melissa Porter

The Dreaded T-Mobile and Sprint Merger Is Officially Dead

The Dreaded T-Mobile and Sprint Merger Is Officially Dead

Sprint CEO and SoftBank board member Marcelo Claure added that he agreed on the merits of the proposed deal, but "We have agreed that it is best to move forward on our own".

This comes after Softbank reportedly torpedoed merger talks between Sprint and T-Mobile due to disagreements over how the combined company would be run.

"The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders", John Legere, president and CEO of T-Mobile US said in the statement.

T-Mobile has been particularly aggressive - and successful - in challenging its two larger rivals. With its hoard of 2.5GHz high-frequency spectrum, Sprint would have been a ideal fit for T-Mobile and its cache of low-frequency airwaves in the 600MHz-700MHz bands. T-Mobile walked away with a $4 billion breakup penalty. The wireless carriers "were unable to find mutually agreeable terms" and want to "put an end to the extensive speculation around a transaction", they said in a joint announcement.

Sources speaking to the WSJ claim that T-Mobile has reached out to Sprint with new terms to see if the negotiations can be revived. While Sprint is financially struggling and has tens of billions of dollars in debt, its 5G spectrum holdings have positioned it well for the future.

The companies expected to have a better shot at the merger this year under the Trump administration.

T-Mobile, on the other hand, is still the fastest growing and most innovative carrier in the states. But Sprint stock stumbled Monday after a news report that its parent company, the Japanese conglomerate SoftBank, called off talks with T-Mobile about the possible merger.

Telecoms will likely try to continue to consolidate, but for now it seems there's a reprieve in the march towards monopoly.

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