Verizon has 116 million US wireless customers, according to a spokesman, while AT&T has 93 million branded customers, as of the first quarter. They are the third largest most wireless phone carriers. CE0 John Legere will be the head of new T-Mobile. Claure stated that now Verizon and AT&T have four times more business and government customers than Sprint and T-Mobile have combined. However, there are also fears that the high level of competition for customers could also ease.
The blistering fast wireless 5G networks that are on the horizon is another key driver.
"The companies will argue that only together will they be able to make the requisite investments in 5G, and there's probably a fair amount of truth to that", Moffett said.
Claure said the difference between the 4G and 5G is like going from black-and-white television to color.
A few weeks later, T-Mobile's Legere said he was open to "various forms of consolidation" when asked about a potential merger with Sprint and SoftBank under the Trump administration.
But in order for the merger to go through, it's going to need regulatory approval from the Federal Communications Commission, and for the Department of Justice to not object on antitrust grounds. Foreign ownership of the combined company could expose the proposed merger to scrutiny by a secretive national security panel that reviews acquisitions of USA businesses by foreign investors. "SoftBank's leverage makes it hard for Sprint to make massive investments in new infrastructure", said Erik Gordon, a professor at the University of Michigan's Ross School of Business.
This combination sets us up to SUPERCHARGE the Un-carrier and to quickly deliver the only Nationwide 5G network with BOTH the breadth and depth needed to offer the kind of capacity and performance that American consumers want and need in the 5G era!
Pro forma net leverage on the merger is expected to be around 2.9 times, with rapid deleveraging to less than 2.0 times in three to four years.
The two also promised that the deal will create thousands of jobs.
The company plan to hire more employees especially in rural areas.
Operating as T-Mobile, the company would have about $74 billion in annual revenue and 70 million wireless subscribers.
But there is skepticism a union could avoid lay-offs.
The combined company will be named as exclusively T-Mobile and will operate out of T-Mobile current headquarters in Bellevue, Washington - with a second headquarters in Overland Park, Kansas.
Earlier today, T-Mobile and Sprint announced that they'd reached an agreement on a merger deal they claim will help boost the rollout of 5G, create jobs, and spur competition. Claure will serve on the board of the merged company, along with SoftBank Group chairman and CEO Masayoshi Son. After the government nixed AT&T's attempt to buy the company in 2011, T-Mobile led the way in many consumer-friendly changes, such as ditching two-year contracts and bringing back unlimited data plans.