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Sprint and T-Mobile announced that they called off merger talks to create a stronger wireless company to rival market leaders in U.S. and leaving Sprint engineers to turnaround on its own.

The latest failed attempt to merge of two SoftBank Group Corp (Sprint parent) and Deutsche Telecom AG (T-Mobile parent) , show unwillingness to part with too much of their own U.S. telecom assets.

 

Where the combination of these to companies would have had more than 130 million subscribers in U.S. behind Verizon and AT&T Inc.

 

The failed merge could help consumers in competition of four providers to discount their cellphone plans in a battle to grab most customers.

 

Professor Erik Gordon from University of Michigan at Ross School of Business said,” Consumers are better off without the merger because Sprit and T-Mobile will continue to compete fiercely for budget-conscious.”

 

Sprint and T-Mobile said they ended talks because the companies “ were unable to find mutually agreeable terms.” 

 

Sprint CEO Marcelo Claure said that even though the companies could not reach a deal.” We certainly recognize the benefits of scale through a potential combination.”

 

He also said Sprint has agreed it is best to move forward on its own with its assets” including our rich spectrum holdings, and are accelerating significant investment in our network to ensure our continued growth.”

 

According to Analysts an end to talks with T-Mobile would leave debt-laden Sprint without the scale needed to invest in its network and to compete in a saturated market.

 

No other deal was announced yet after the ban on merger talks that was result of U.S government auction of wireless airwaves.

 

Sprint and T-Mobile said they were open to exploring other options. 





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