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Carriers use all sorts of promotions to entice subscribers their way, and for the past four years now T-Mobile has been been handing out weekly freebies as part of its T-Mobile Tuesdays program. We've even seen other carriers try to spin up their own versions of the deal, to mixed success. But now that T-Mobile and Sprint are one, what does that spell for access to T-Mobile Tuesdays giveaways? After confirming plans to extend the offer to Sprint users earlier this year, T-Mobile is finally flipping the switch, welcoming Sprint subscribers who can grab their first deals next Tuesday.
Today, T-Mobile has announced that its merger with Sprint has officially completed. After years of rumors, planning, and severalchallenges, the two are now joined together, existing together under the single T-Mobile name. John Legere, T-Mobile's exuberant and endearingly obscene CEO, is also handing off the reigns for the new company to Mike Sievert, who was up until now COO and President of T-Mobile.
When you hear the word T-Mobile, several things probably come to mind: a retina-melting shade of fluorescent pink, industry-bucking "uncarrier" campaigns spanning the greater half of this decade, and the incessant, enthusiastic tweets of Chief Executive extraordinaire, John Legere. Well, you can soon scratch that last one off your list. Per an announcement made by Legere himself, the spirited face of T-Mobile plans to step down from his CEO position in just six short months.
The road to merging two large carriers isn't an easy one. For Sprint and T-Mobile to merge into "New T-Mobile," a lot of hearts need to be won over. In October 2018, company shareholders approved the merger and in December, "Team Telecom" and the Committee on Foreign Investments green-lighted it too. The next two hurdles to cross are clearances from the Department of Justice and FCC. Yesterday, T-Mobile CEO John Legere penned a letter to FCC Chairman Ajit Pai asking for approval. In this, he promised to keep rates "the same or less" than the current plans by T-Mobile and Sprint, for at least three years.
T-Mobile, the third largest wireless carrier in the US by subscriber count, posted impressive third quarter results Tuesday. The operator revealed 774,000 net new monthly-billed subscribers — far above Wall Street estimates of around 628,000 net additions. As for revenue, T-Mobile brought in $10.84 billion, beating estimates of $10.72 billion. Perhaps the best news of all for the wireless company's future, though, was its announcement that shareholders had greenlit its acquisition of Sprint, the fourth largest American carrier.
What a roller coaster the past two months have been. T-Mobile and Sprint were first reported to be in merger talks in late August, with an announcement planned for the end of October. Everything seemed to be going well, but Sprint eventually pulled out due to ownership concerns. The combined carrier would have been majority owned by T-Mobile's parent company, which SoftBank and Sprint weren't happy about.
T-Mobile and Sprint were first reported to be in merger talks in late August, with the announcement originally planned for the end of October. Last month, a report from Bloomberg stated that the carriers' parent companies (Deutsche Telekom and SoftBank) were in the final stages of an agreement. But the end of October came and went with no announcement.
Update:Bloomberg is reporting Dan Hesse will step down and be replaced in an announcement tomorrow, during which the plan to end pursuit of T-Mobile will also be discussed.
This one's short and sweet, folks: Sprint has dropped its efforts to purchase T-Mobile according to the Wall Street Journal, citing the perpetually present "people familiar with the matter." According to said persons, SoftBank and Sprint decided the merger would simply be too difficult to accomplish in the face of federal regulators, an experience AT&T became all too familiar with back in late 2011, to the tune of a $4 billion severance fee.
Rumors of an impending Sprint acquisition of T-Mobile have swirled for months as America's two underdog carriers have engaged in a not-so-private courtship, and it appears an announcement may be close, if you're inclined to believe Bloomberg.
The deal would allegedly value T-Mobile around $30 billion ($31.3 billion to be precise), though an exact agreement hasn't been reached as to a number. T-Mobile carries a little under $15 billion in debt and over $5 billion in cash, meaning Sprint's new parent firm Softbank will take on even more debt in an attempt to fortify a position against American wireless heavyweights AT&T and Verizon.