Sprint is the latest telecom company relegated to the history books now that the T-Mobile merger is official. The company completed the $31 billion deal April 1, punctuated with the departure of the merger’s architect CEO John Legere.
The Lowdown: The combined telecom carrier, now under the leadership of Mike Sievert (pictured above, left), says it will not change its operating model or style as it absorbs its rival. The new T-Mobile has approximately 140 million wireless subscribers.
The Details: Legere, who engineered the revival of T-Mobile as the Un-carrier, is stepping down a month earlier than planned. He says the merger closing created a natural point to hand off to Sievert, previously the company’s president and COO. Legere will continue to serve on the company’s board of directors.
While the operating model won’t change, T-Mobile is looking to expand its channel program. Over the past year, T-Mobile has been recruiting new partners and plying the channel to expand its indirect business. The T-Mobile Partner Program falls under the leadership of Jonathan Blood, vice president of direct to business and indirect at work; and channel chief Tim Acker.
The Impact: The merger reshapes the wireless carrier market landscape. Based on 2019 subscriber data, the merger places T-Mobile in a tie for second place with Verizon in terms of wireless subscriber market share. AT&T leads the market with 40% share; Verizon and T-Mobile now have approximately 29% share each, with the balance in the hands of minor and regional carriers.
As part of the deal with the Department of Justice, T-Mobile will sell some of its assets to satellite TV company Dish Networks to create a 5G network and a new wireless carrier.
Background: The T-Mobile-Sprint merger was two years in the making and overcame numerous antitrust issues and lawsuits by more than a dozen states. Opponents of the deal feared consolidation in the wireless market would lead to higher consumer prices. The selling of certain Sprint assets and spectrum, along with the creation of a new company under Dish, is intended to mitigate anticompetitive consequences.
Related Links:
CHANNELNOMICS: Complete Coverage of the T-Mobile-Sprint Merger
