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Sprint, T-Mobile Drop Merger

Sprint and their parent company, Softbank, have decided to stop pursuing the merger with T-Mobile first discussed in 2011. This news comes after three unsuccessful attempts over the course of several years. Various news reporting sites, including this article in the NY Times, indicated that part of the loss of interest in a deal was from the belief that the merger would be blocked by the FCC in the interests of keeping an open market. Together, the two companies control less than a third of the U.S. wireless market but the merger would mean going from four giant carriers to three.

With the deal now dropped, Sprint will have some steep changes to make to stay competitive including updating its network and offering new pricing plans. T-Mobile, on the other hand, will likely look for some new partners to expand its reach. Not that the mobile giant needs it—T-Mobile’s marketing strategies offering post-paid customers a way to switch to no-contract alternatives that hover somewhere between the two have been both bold and successful. Of course, with the smallest network of the four giants, they still have a long way to go.

So for now, I don’t see that much change for the prepaid sector, but with how fast things can change, you never know. We’ll keep you updated.