Mobile, Sprint file merger proposal with FCC

21 June, 2018, 18:28 | Author: Sammy Rose
  • T-Mobile Sprint file for approval of $26 billion merger

T-Mobile debuted the acquisition in its usual splashy way, saying that "we're gonna fix the pain points and bring real choice to consumers across the country", with some vague plan to have a cheap service with 250 channels. And yes, this is the same argument that we have heard before. Instead, the agency should focus on the benefits that will be derived from the T-Mobile/Sprint merger, including investments in infrastructure and new networks; how the two companies plan to transition their existing customers into the newly formed entity; the overall economic benefits of the merger; and, how the new company will affect future technology transitions to 5G and beyond.

"Given this rapidly rising trend, T-Mobile's standalone network will not have the capacity to handle projected future consumer demand for mobile video absent the transaction", the filing said. In particular, Layer3 faces higher costs, especially for licensing content, than its major MVPD rivals because its smaller customer base does not provide the scale needed to leverage volume discounts. While it is still possible, how competitive will they be going up against Sling TV, Hulu, and DIRECTV NOW? Therefore, even with the merger of T-Mobile and Sprint, competition will still thrive in today's marketplace. They would operate under the T-Mobile brand.

According to the documents found by BRG, Layer3 is having to pay between 20 and 30 percent more in fees than their larger rivals.

The new carrier is passing along advanced features to its customers like built-in VPN, a single phone number assignment for multiple devices and native ad-blocking. This scale should allow the company to acquire content at lower rates and on better terms than TMobile and Layer3 can do on their own.

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T-Mobile CEO, John Legere shared the news on Twitter along with a new website dedicated to detailing and promoting the merger. This will include high-quality video content-including HD and 4K-to in-home and mobile locations across the country.

Will T-Mobile be able to launch their new streaming service by the end of 2018 as advertised?

In two paragraphs, T-Mobile neatly lays out what its TV service is going to look like. That's an ambitious plan.

Although Wall Street analysts haven't given Sprint and T-Mobile very good odds to get their proposed merger approved, news last week that AT&T was successful in completing its acquisition of Time Warner may change that calculus. And of course, 5G would help people cut the cord in a literal sense by letting them ditch wired access.

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