Deal or No Deal: How the Sprint – T-Mobile Saga Will Impact Rural America

January 2020 - Jeff Johnston

Key Points

  • The fate of the Sprint – T-Mobile merger is currently in the hands of a district court judge.
  • Those opposed to the merger believe it will negatively impact rural operators’ revenue among other factors.
  • However, if T-Mobile follows through on its plan to expand cell phone coverage in rural America, the merger could provide some wholesale/enterprise opportunities for rural telecom operators.
  • If the judge blocks the deal, it will be business as usual for the foreseeable future, but future M&A for Sprint and its ability to survive on its own do create uncertainties for rural America.
  • There is a lot to weigh in the potential merger, but T-Mobile’s lack of roaming agreements with rural operators is a legitimate concern for those opposed to the merger.

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