Is Sprint merging with T-Mobile? Well both companies have been very vocal about it and have not really made any efforts to keep it a secret, although we guess the details are still somewhat unknown at this point in time. Our previous report suggested that if the deal were to happen, T-Mobile’s CEO would takeover Dan Hesse’s position at Sprint as CEO, making things come full circle since Legere used to work under Hesse in the past.
Now thanks to a report from TK Tech News, additional details about the merger have been leaked. For starters both companies are expected to be merged under a single banner called Softbank USA. Deutsche Telekom, T-Mobile USA’s parent company, is also expected to have a stake of 20% of the combined company, and apparently one of the key points of the deal is that Deutsche Telekom customers get free roaming on Softbank’s networks, and vice versa.
Also bad news for prepaid customers is that brands like MetroPCS, Virgin Mobile, and Boost Mobile, all prepaid networks under Sprint/T-Mobile, will be scrapped. it should be noted that only the brands would be scrapped, but the prepaid network will remain and rolled into a single structure under the Framily Plan. It is unclear how this will affect those prepaid customers, but hopefully more details will emerge later.
The report also goes on to suggest that the deal could be announced this week, possibly on Monday, so until we hear more, do take all of this with a grain of salt for now. These are some interesting proposals and changes that will be taking place, although we guess the hurdle that both companies face will be from regulators, who have in the past expressed that they aren’t too happy about the potential merger.