One of the most exciting developments in the telecommunication world today is the proposed merger of telecom giants, Sprint and T-Mobile. The third and fourth largest mobile phone carriers in the United States announced their merger back in 2018 and since then, they have been working on the details of their union. Monday’s announcement by the Federal Communication Commission (FCC) chairman, Ajit Pai, that he welcomed the deal is an indication that the merger process is almost complete.
What Does The Merger Bring To The Table?
Many market analysts predict that this merger will actually help stimulate competition in the industry. This is because a merged Sprint and T-Mobile will be able to effectively compete with the two industry leaders, namely AT&T Mobility and Verizon Wireless. This shake-up of the mobile phone market dynamics will lead to competitive pricing as well as better voice and internet services.
Here are some other reasons why this merger might be good for US consumers.
Faster 5G Network Rollout
5G is touted as the next frontier of mobile telephony and will pave way for innovations such as self-driving cars and augmented reality products. By merging together, T-Mobile and Sprint will be able to roll out their 5G network much faster than if they were doing it individually.
Experts estimate that the new entity from the merger will be able to expand its 5G network capacity by 8 times above what each individual company would have been able to do. It is also predicted that the new entity will be able to deploy the 5G network 15 times faster than the two constituent companies. This rapid deployment is partly due to the fact that Sprint already owns a low-band spectrum, a vital component in building a 5G network.
More Competitive Pricing
Experts estimate that the merger of these two companies will create cost savings worth about $ 6 Billion. T-Mobile hopes that most of these cost savings will trickle down to consumers, according to the company’s CEO John Legere.
The consolidation of their customer base, estimated to be at about 100 million customers, will also force the newly merged organization to implement competitive customer policies as well. This will result in a better experience for all mobile customers as the other two telecom giants are likely to respond with their own improved customer policies.
Better 5G Content
Telcom companies have long identified content as a key driver in new sales and customer retention. For this reason, many of the telecom companies have invested heavily in content creation, including buying out a host of media companies.
While this strategy has had mixed results, T-Mobile has been toying with the idea of rolling out the first 5G television service as an innovative way of disrupting the cable and satellite TV sector and driving their data and internet business. The merger with Sprint will move this dream closer to reality as it will bring Sprint’s 5G broadband service into the equation. This, experts hope, will speed up the process of launching this innovative service that is expected to revolutionize how Americans watch television.
The Best Is Yet To Come
There’s still a little work to be done and the merger is yet to complete all the required regulatory hurdles. Nevertheless, customers of these two companies and the industry as a whole have a lot to look forward to from this historic merger.
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