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Tuesday, February 11, 2020

-=Sprint (S) and and T-Mobile US (TMUS) : merger finally gets approval


  • The New York Times reported that a judge is expected to rule in favor of its merger with T-Mobile US (TMUS) 
  • 80 million subscribers



U.S. District Court Judge Victor Marrero on Feb. 11 cleared the merger. Several states had sued to block the union, saying it would harm wireless competition. The Federal Communications Commission and the Department of Justice approved the deal earlier with conditions.

T-Mobile, controlled by Deutsche Telekom (DTEGY), said it expects the merger to close as early as April 1.

When combined, T-Mobile/Sprint would own more radio spectrum than AT&T or Verizon, an important edge as 5G wireless services are rolled out.

"T-Mobile will finally have the deep block of 2.5 GHz mid-band spectrum they always coveted," MoffettNathanson analyst Craig Moffett said in a blog. "That will allow the new T-Mobile to mount the most credible threat either Verizon's or AT&T's network supremacy has ever faced."

T-Mobile Stock Fundamental Analysis
T-Mobile continues to lead the wireless services market in subscriber and revenue growth. Growth has cooled, though, since 2017 for all U.S. wireless companies with the market saturated.

Most consumers have unlimited data plans. They upgrade smartphones at a slower rate. Plus, data-gobbling mobile video hasn't panned out as a big moneymaker.

U.S. regulators blocked AT&T's proposed acquisition of T-Mobile in 2011. A rejuvenated T-Mobile in late 2013 unleashed its "Uncarrier"-branded marketing campaign along with aggressive price discounts. T-Mobile also upgraded its wireless network, closing a performance gap with Verizon.

The strategy paid off as T-Mobile grabbed the lion's share of coveted "postpaid" subscribers that spend more on wireless data services.

Competition appears to be heating up in early 2020, with Verizon turning more aggressive with promotions. Analysts expect Apple's (AAPL) rollout of a 5G iPhone to spark increased marketing.

T-Mobile Outlook With Sprint Merger Closing
When combined, the new T-Mobile/Sprint will have prime radio spectrum to launch 5G wireless services. T-Mobile has touted plans to provide in-home fixed wireless broadband services by 2024.



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