T-Mobile announced Wednesday that it has completed its $26 billion merger with Sprint, ending a two-year saga.
The company, which is being marketed as “The New T-Mobile” but will continue to operate as simply “T-Mobile,” will be led by Mike Sievert, who immediately takes the place of outgoing CEO John Legere, the carrier says in a news release.
T-Mobile, Sprint Merger: What It Means for You
Clark.com has previously written about the implications of the merger and how the companies had to battle through a strenuous approval process, including an antitrust lawsuit filed by a coalition of states.
Now that the merger is done, there are three major players in the wireless carrier market:
A fourth company, Dish, has vowed to build a wireless network that will serve 70% of the U.S. population by 2023.
It has some catching up to do, but as part of the deal Dish gets a leg up by acquiring some heavyweight assets, including:
- Additional wireless spectrum
- Wholesale access to T-Mobile’s network for seven years
- Sprint’s prepaid brand Boost Mobile
The district court that handled the lawsuit against the merger seemed more than impressed.
In its ruling, the Court wrote that “Dish’s track record…as well as evidence of the currently confidential and creative strategic partnerships that Dish is planning, suggest that Dish would compete as a disruptive ‘maverick’ in the RMWTS [retail mobile wireless telecommunications services] markets, offering low prices for innovative and high-quality services.”
Impact on T-Mobile Customers
In the meantime, T-Mobile is making clear that it will keep its rate plans “the same or better” for three years, including access to 5G. Here are some of their other big priorities going forward:
- Building the nation’s most wide-ranging 5G network
- Bringing fast speeds to both urban areas and underserved rural communities
- Giving users “the best rate plans at low prices”
“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,” new CEO Sievert says in a statement. “T-Mobile has been changing wireless for good — and now we are going to do it on a whole new level!”
Along with those promises, the company is throwing around some ambitious numbers for its customers.
Here are just some of the things T-Mobile says you can expect in the near future:
- 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
- 14 times more capacity than T-Mobile currently offers in the next six years
- Coverage for 90% of rural Americans with average 5G speeds of 50 Mbps, up to two times faster than broadband on average
Impact on Sprint Customers
For Sprint customers, there is no need to switch plans or worry about rate changes right now.
“Over time, you will see additional benefits as we supercharge our network and honor our commitment to offer the same or better rate plans to our customers,” the company says on its FAQ page.
Sprint stores are making preparations to serve legacy Sprint and T-Mobile customers, as well.
For the time being, Sprint’s branding and network will remain separate, although they will be combined and operate under the T-Mobile banner at some point in the future.
Clark’s Take
So what does money expert Clark Howard think about all of this? Here are the two things he says you need to focus on:
1. T-Mobile’s $15/Mo Plan
“The only immediate change of great value to consumers is the $15 per month plan for low-volume customers,” he says.
This new plan is a real money-saver because it has unlimited talk and text and 2 GB of data per month, Clark notes.
2. T-Mobile Home Internet
“The next big thing will be T-Mobile as a competitor for high speed internet to the home,” Clark says. “That will likely be the biggest direct benefit to consumers of the merger — giving you a choice other than cable for your home internet.”
“T-Mobile is slowly rolling out $50 per month home internet with unlimited data included,” Clark says.
Of course, we have yet to see how T-Mobile’s competitors will respond, so there could be even more positive changes coming.
One thing you can be sure of is that Clark.com will stay on top of what T-Mobile and the other carriers offer and keep you posted.
Meanwhile, if you’re in the market for a new cell phone, check out our comprehensive cell phone guide.
