With Change Of U.S. President, Sprint Eyes Merger With T-Mobile Or Comcast

U.S. regulators stopped potential mergers among telecom companies in the U.S. during the administration of former U.S. President Barack Obama. However, the change of a national leader resulted in changes in business policies under current President Donald Trump in terms of lower taxes and lighter regulation. As a result, Sprint is eyeing to merge with either T-Mobile or Comcast.

Small To Major Telecom Players

Financial advisors are helping Masayoshi Son, founder, and CEO of SoftBank, owner of Sprint, reach a decision on a potential merger. The SoftBank officials are in Washington discussing with senior members of the economic team of Trump the possible merger, Android Authority reports. The plan is also timely, analysts say, because Sprint and T-Mobile have grown from small to major players in the telecom industry in the last five years, making the planned merger a smart move.

The planned merger of Sprint with either T-Mobile or Comcast would benefit consumers since more competition could result in lower prices. If Sprint would merge with T-Mobile, it would cede control of the company to Deutsche Telekom, owner of T-Mobile. Comcast, during the Obama administration, attempted but failed to buy Time Warner Cable but was prevented by regulators.

Next-Generation Mobile Technology

Son, who has been friendly with Trump since his electoral victory, wants to aggressively invest in wireless networks in the U.S. which would enable next-generation mobile technology, according to a New York Times report. Since T-Mobile is the third biggest carrier in the U.S., SoftBank has changed its outlook and is willing to give control of Sprint, the fourth-largest carrier, to Deutsche Telekom. In 2014, SoftBank wanted to purchase T-Mobile but keep control, Arstechnica notes.

Trump is apparently open to the merger since Son allegedly promised the president that SoftBank would create 50,000 jobs in the U.S. through a $100-billion technology fund. Likewise, Sprint also announced a plan to create thousands of new jobs in the country which sits well with Trump’s campaign promise to bring back jobs to the U.S. and make America great again, Motley Fool reports.