The number of major wireless carriers in the United States could shrink from four to three.
Sprint and T-Mobile have announced that they intend to merge.
T-Mobile on Sunday closed a $26.5 billion agreement to merge with Sprint, upping Sprint’s market value to $6.62 per share, CNBC reported.
The deal will help the companies slash costs and could make them a stronger competitor to the larger AT&T and Verizon. But consumers might see higher prices because the combined company wouldn’t have to offer as many promotions to lure customers.
T-Mobile Chief Executive John Legere will head the merger and the company, which will be named T-Mobile. In a video announcement posted on Twitter, Legere said the new company will “create robust competition and lower prices across wireless, video and broadband” and lead the way to 5G technology.
The Communications Workers of America, a union for telecommunication workers, says the merger will cost at least 20,000 U.S. jobs and reduce competition in wireless, bringing higher prices.
But the cost savings could help the combined company build infrastructure and buy rights to the airwaves needed for faster “5G” service that is expected to be up in running within the next few years.
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