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Over the last several quarters, I have heard opinions of the pending T-Mobile, Sprint merger from every corner. Those who are pro-merger focus on all the benefits it woud bring. Those who are anti-merger focus on what would be lost and how it would harm different segments. Amid the chaotic debate, what really matters is whether the regulators are going to say yes or no.
Over the last several years, both T-Mobile and Sprint have been involved with what could be considered one of the most difficult mergers ever attempted. Hammering out a deal between the two companies was only the first step. Now they are trying to convince regulators to approve it.
What is the state of the wireless industry, and where is it heading? In the U.S., there are four major networks: Verizon Wireless and AT&T Mobility are the larger players; T-Mobile and Sprint are smaller.
Over the last decade, Verizon and AT&T have won most of the market share. Years ago, T-Mobile had a major misstep when it didn’t see the need to upgrade from 2G to 3G. That almost sank the company. Over the last several years, it has recovered and has been growing.
Sprint has been struggling, well, forever. It has been around a long time, but it never really has been a robust competitor.
When it was acquired by Softbank, headed by CEO Masayoshi Son, there was a glimmer of hope. Sprint, then led by Marcelo Claure, started to show some growth, but the company is still struggling. Now, with hindsight, it seems that saying…