T-Mobile US announced that it has completed its merger with Sprint taking on bigger rivals AT&T and Verizon.
The combined company will operate under the name T-Mobile. Germany-based Deutsche Telekom will own majority stake in T-Mobile. The merger is a setback for the promoters of SoftBank of Japan.
Deutsche Telekom will hold around 43 percent stake in T-Mobile. SoftBank’s share in the merged entity will be around 24 percent.
Sprint has agreed to divest its pre-paid business to Dish Network for around $1.4 billion. Sprint will also sell its 800 MHz spectrum licenses to Dish for $3.6 billion.
T-Mobile will have 140 million mobile phone customers across the US and $77 billion in terms of annual revenue. T-Mobile will have around 300 MHz spectrum, giving it almost double the spectrum held by the two major mobile competitors AT&T and Verizon.
The scale and financial strength of the combined company will drive an investment of $40 billion into its network, business and more over the next three years. Synergies achieved from the integration will unleash at least $43 billion in value for shareholders, T-Mobile said today.
Mike Sievert will assume the role of CEO of T-Mobile and will replace John Legere, who served as CEO of T-Mobile since 2012.
John Legere engineered a turnaround of the company as T-Mobile disrupted the wireless industry and became the fastest growing company in wireless, capturing 80 percenr of the industry’s post-paid phone growth from 2013 to today.
Mike Sievert, president and CEO of T-Mobile, said: “With this powerful network, the New T-Mobile will deliver real choice and value to wireless and home broadband customers and double down on all the things customers have always loved about the Un-carrier.”
T-Mobile network will have 14 times more capacity in the next six years. Customers will have access to average 5G speeds up to eight times faster than current LTE in just a few years and 15 times faster over the next six years.
T-Mobile will provide 5G to 99 percent of the U.S. population and average 5G speeds in excess of 100 Mbps to 90 percent of the U.S. population.
T-Mobile’s business plan is built on covering 90 percent of rural Americans with average 5G speeds of 50 Mbps, up to two times faster than broadband on average.
Neville Ray, president of Technology at T-Mobile, said: “The supercharged 5G network that we’ll build as a combined company will be a huge step forward, transforming wireless, fueling innovation and delivering new experiences for customers all across the country that we can’t even imagine today.”
T-Mobile has committed to delivering the same or better rate plans for three years, which includes access to 5G, including for prepaid and Lifeline customers.
T-Mobile’s network will deliver 100+ Mbps speeds for wireless broadband to 90 percent of the population and offer in-home service to millions of the country’s households in the next six years.
PJT Partners and Goldman Sachs acted as financial advisors to T-Mobile. Wachtell, Lipton, Rosen & Katz provided legal counsel to T-Mobile and Deutsche Telekom. Evercore acted as financial advisor to the committee of independent directors of T-Mobile and Latham & Watkins provided legal counsel to the committee of independent directors. Morgan Stanley served as a financial advisor to Deutsche Telekom.
The Raine Group LLC acted as lead financial advisor to Sprint. J.P. Morgan also acted as a financial advisor to Sprint. Morrison & Foerster LLP provided legal counsel to Sprint and SoftBank.