T-Mobile–Sprint Merger Collapses

T-Mobile–Sprint Merger Collapses
Long running talks between T-Mobile and Sprint to merge the two companies have failed.

(CCM) — Sprint's plans to guarantee its future by merging with T-Mobile are in tatters following the collapse of talks between the two companies, according to a Reuters report.

The two wireless carriers, ranked third and fourth in the U.S., have been negotiating for months to create a larger entity with the resources needed to challenging market-leaders AT&T and Verizon more effectively. This combined company would have had a subscriber base of more than 130 million subscribers. The two companies say they ended talks because they were "unable to find mutually agreeable terms," according to the Reuters report, but without a merger Sprint in particular may struggle to find the resources to invest in its network. Further merger talks in the future have not been ruled out.

The collapse of the deal may be good news for phone users, however. "Consumers are better off without the merger because Sprint and T-Mobile will continue to compete fiercely for budget-conscious customers, Erik Gordon, a Ross School of Business professor at the University of Michigan, told Reuters .

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