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T-Mobile and Sprint announce merger to win the war for 5G (TMUS)

T-Mobile and Sprint announced Sunday that the two mobile carriers will merge. The new combined entity will be called T-Mobile and will have a wireless subscriber base of around 70 million, compared to 111 Verizon subscribers and 78 million AT&T subscribers.

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First is 5G network development.

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The second shift is convergence of mobile networks, broadband, and video.

As this shift occurs, the role of mobile carriers is changing from just providing wireless, to being purveyors of all of a consumer’s connectivity and providing access to mobile video. The combined Sprint/T-Mobile will be able to leverage their resources to offer lower prices and better compete with leading mobile carriers like Verizon and mobile-minded internet providers like Comcast as this shift occurs.

While T-Mobile and Sprint agreeing to merger terms is a big step forward, the pair still need to get approval from regulators to finalize the deal. Regulators have generally held an unfavorable view of shrinking the US mobile carrier market from 4 to 3, a move that government entities have claimed will reduce much-needed competition.

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