There is no shortage of rumors predicting a T-Mobile Sprint merger. Both of these carriers have lagged behind Verizon and AT&T in the U.S., a merger would make them strong enough to put on a brave offensive. Magenta’s chief financial officer Braxton Carter, in an interview with Reuters, has said that a T-Mobile Sprint merger is “the logical ultimate combination.” Though he hasn’t said if both of them have been involved in discussions, so even if this isn’t a totally bad idea, its not like a merger of this size and nature will just materialize out of thin air.
Carter believes that this merger will be good for the industry, as it’ll effectively become a tool to break the “duopoly” of both AT&T and Verizon, that it’ll “create a more competitive environment.” Only recently the CEO of AT&T, Randall Stephenson, said that its unlikely that any major mergers in this industry can take place as regulators seem to want four national networks in the U.S. Back in 2011, regulators blocked T-Mobile’s multi-billion dollar sale to AT&T on similar grounds. Carter acknowledges that the regulatory environment in the U.S. is “tough,” and that it is no longer a question of if consolidation will take place, now it is more the question of when further consolidation is seen in the industry.
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