This week Sprint and T-Mobile announced their intentions to merge (again). The move would combine the 3rd and 4th largest wireless operators in the United States. If the deal is approved, the resulting company would be the nation’s second-biggest wireless carrier after Verizon, controlling roughly 100 million customers. Sprint was valued at $26 billion based on its last closing price, and T-Mobile was last valued at $55 billion. The merger was first discussed in 2014 but scrapped because of concerns about regulatory challenges from the Obama administration.
The agreement would leave just three major wireless carriers in the United States but must first clear antitrust regulators.
From what has been announced the combined company would be based in Bellevue, Washington, and will be called T-Mobile. Current T-Mobile CEO John Legere will run the combined company. T-Mobile’s majority owner Deutsche Telekom will hold a 42 percent stake in the company, while Sprint’s majority owner SoftBank will hold 27 percent, with public stakeholders holding the rest. Sprint CEO Marcelo Claure and SoftBank CEO Masayoshi Son will sit on the combined company’s board.
At LotusFlare we like to look at events in the industry through the lens of customer experience.
T-Mobile has probably had the biggest impact in changing the digital customer experience among any US carrier over the past decade. The “Uncarrier” has transformed how customers buy and manage their wireless service. With innovative moves like doing away with long-term contracts that lock customers into a carrier, offering free Netflix, low cost international roaming, and unlimited data plans T-Mobile has been a disruptor in the industry.
T-Mobile Tuesdays have set the bar for reward and loyalty programs. The gift app and #GetThanked campaign lets T-Mobile customers claim weekly bonus offers every Tuesday, including free food, movie tickets, Lyft rides and more, all through its free smartphone app. T-Mobile Tuesdays is available to all T-Mobile subscribers, including prepaid users. Customers can download the app, register their T-Mo phone number, and check back each Tuesday for their exclusive gifts and prize draws. We think these cutting-edge reward and loyalty push the industry forward and benefit the customer.