Sprint Looking to Postpone Merger with T-Mobile

All you Sprint customers that were hoping to cash in on those new T-Mobile deal, may have to wait. While the news, to this point, has been suggesting that this merger will happen, won’t – for now. As this merger has been sought after since 2013, it seems Softbank, Sprint’s owner, is having a change of heart. According to Nikkei, it appears that Softbank does not like what the combined ownership of the combined business would look like.

The report suggests that Softbank’s board took a vote on Friday to not give up control of the combined company and thereby call off merger negotiations. There is a possibility that they are using the media to get Deutsche Telekom, T-Mobile’s owner, to change their terms. The vote is designed to signal that they are proposing to end the negotiations.

Sprint is not in a major position to dictate terms. T-Mobile tried to merge with AT&T several years ago but was killed by the monopoly concerns. After AT&T paid T-Mobile, the company pushed forward and revolutionized the wireless market. To the point that T-Mobile makes a significant change the other companies follow suit. T-Mobile has moved from the distant fourth place company to a solid third.

Sprint, on the other hand, has had a more difficult time. Moving their network to a true LTE network cost them dearly. Unlimited plans attempted to lure consumers back, after years of consumer neglect. Sprint has fallen into the fourth-place company to have 10 million fewer consumers than T-Mobile.

Whether the negotiations will continue remains unclear. Whether Deutsche takes the bait and re-negotiates the terms could seem likely. However, T-Mobile is interested in merging with Sprint, but in the view of business at this moment: Sprint needs T-Mobile more than T-Mobile needs Sprint.

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