The news of T-Mobile & Sprint merging is not new. What is new, is that as per recent reports they are merging by the end of this month. Sprint is the fourth biggest mobile network operator in the US while T-Mobile is the third biggest wireless carrier in the US. This merger will strengthen the position of both parties. Both the telecom companies are working together to finalize the deal and an official announcement is expected of the merger by end of the month.
Currently, T-Mobile market valuation is $52 billion while Sprint market valuation is $29 billion. As per reports if the merger fails there will not be any breakup fee. So neither of the telecom tycoons will face any financial issues in case of failure of the merger.
The point though is that at the moment neither of the companies have made any official announcement of the merger, but we will soon hear one.
If the merger is a success it would change the dimensions of US telecom industries. The US has 4 major carriers for quite a time now. If it becomes three biggest carriers after the merger, it will make it more difficult for any new carriers to enter the US market. Also, the two combined together might just become the leading telecom operator in the USA.