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T-Mobile Subsciber Base Grows, Merger With Sprint Still On Radar

October 24, 2017 by  
Filed under Mobile

T-Mobile the “Un-carrier” posted third-quarter results — usually a chance for John Legere to jump on a conference call to boast about the company’s performance or bash its competitors. But aside from a video Q&A segment and a quote in a press release, Legere is remaining mum.

“With all the rumors and speculation out there, we decided that we wanted to make sure you all saw and focused the Q3 results, and not just on the rumors and speculation that seem fill the news everyday,” Legere said in the video blog.

That’s because T-Mobile is that close to a deal to merge with Sprint, and Legere and Co. would probably like to skip out on questions that they wouldn’t be able to answer.

T-Mobile and Sprint, and their respective parents, German carrier Deutsche Telekom and Japanese carrier SoftBank, all still expect to announce a deal, according to a person familiar with the talks. Bloomberg reported on Thursday that the merger would be delayed for a few weeks.

So for now, T-Mobile is focusing on its quarterly results, which saw the nation’s third-largest carrier add 595,000 post-paid phone subscribers, or customers who pay at the end of the month, and typically boast higher bills and credit scores. It added a total of 817,000 post-paid customers when factoring other connected devices like tablets and wearables.

The results mark the seventh quarter in which the company has led the rest of the industry in growth, a product of aggressive marketing and a continued rollout of perks. The company has continued to turn heads with freebies like its T-Mobile Tuesday giveaway program, free international data and its all-in, tax-free pricing. Its latest deal gives Netflix away to family customers on its unlimited data plan.

The moves have benefited consumers even if they aren’t with T-Mobile. Verizon has reintroduced an unlimited data plan, and AT&T bundles HBO with its unlimited data offering. Sprint offers a year of service for free.

That competitive spirit has had an impact on T-Mobile’s results, which marked a decline from a year ago. T-Mobile blamed rival promotions, a split in the release of the iPhones (the iPhone X is due to hit markets next month) and the impact from the hurricanes.

The big question is whether things change with a T-Mobile-Sprint merger. Critics warn the industry may get less competitive, resulting in fewer perks and discounts for consumers. Integrating two national carriers may also prove to be a distraction for the combined company. Sprint itself is the product of a disastrous merger between the original Sprint and Nextel.

T-Mobile has the benefit of a strong track record of execution.

In total, T-Mobile added a net 1.3 million new customers in the period, its 18th straight quarter where it exceeded the 1 million mark.

The company posted a third-quarter profit of $550 million, or 63 cents a share.

Revenue rose 8 percent to $10 billion.

Sprint, T-Mobile Merger Appears To Be Dead

August 7, 2014 by  
Filed under Mobile

Sprint Corp has canceled its bid to purchase No. 4 U.S. carrier T-Mobile U.S. Inc after regulatory resistance showed no signs of softening despite months of lobbying, people familiar with the matter told Reuters.

The move is a rare setback for Sprint’s Japanese parent SoftBank Corp, whose billionaire founder Masayoshi Son had seen the acquisition as key to taking on U.S. market leaders AT&T Inc and Verizon Communications Inc.

Sprint, the No. 3 U.S. carrier, and T-Mobile have not ruled out consolidation in the future but concluded that a deal is unlikely to be approved at this time, the sources said. U.S. regulators have insisted that they want to keep the number of major wireless carriers at four.

“We didn’t think the opposition would be this strong,” a SoftBank executive said, but added: “The environment will definitely change”.

The failure to reach a deal could give added impetus to a rival bid for T-Mobile by French telecoms firm Iliad. Iliad made a lower bid than Sprint but is in talks with U.S. cable and satellite companies to sweeten its offer.

In the wake of the failed talks, Sprint will appoint a new CEO – Marcelo Claure, founder of mobile phone distributor Brightstar Corp which was acquired by SoftBank last year, a separate person with knowledge of the matter said. Claure, who has won a string of awards for entrepreneurship, joined Sprint’s board in January.

He will replace Dan Hesse who has been CEO of Sprint since 2007. Hesse led a rip-and-replace overhaul to modernize Sprint’s network but it caused cellular sites to go black and the company to hemorrhage subscribers.

Sources declined to be identified as the matter has not been disclosed by the companies publicly. Representatives for Sprint and SoftBank declined a request for comment. T-Mobile did not immediately respond to a request for comment.