The combined company plans to invest heavily in 5G network infrastructure.
(CCM) — T-Mobile, the U.S.'s third largest mobile carrier, has agreed to buy Sprint, the fourth largest carrier, to create a business that can go toe-to-toe with market leaders Verizon Wireless and AT&T Mobility, according to a BBC report.
John Legere, T-Mobile's chief executive, announced in a tweet that the new company will spend an astonishing $40 billion over the next three years to build a 5G network spanning the country.
"Together, we will build the highest-capacity mobile network in US history!! I'm talking 30X more capacity than T-Mobile today!!," he said.
$40 billion is 50% more than the two companies had invested in infrastructure over the last three years, he added.
The combined company will be called T-Mobile and will have a subscriber base of more than 125 million people. This is less than Verizon's 150 million subscribers and AT&T's 140 million.
"This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience - and do it all so much faster than either company could on its own," Legere promised.
T-Mobile's previous attempt to buy Sprint in 2014 was thwarted by the Obama administration over competition concerns, and this deal will be closely scrutinized by the current administration before any go ahead is given.
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