Sprint and T-Mobile are working on a merging proposal of $32 billion dollars.
This merging strategy is thought to aid these two companies when it comes to dealing with their competitors. T-Mobile has taken part in an aggressive marketing campaign and last year they eliminated contracts, dropped international roaming charges and offering pay competitors’ customers $650 to switch over. T-Mobile is attempting to expand its high-speed 4G-LTE network.
Industry analyst Jeff Kagan said, “They can’t continue this forever because it will cost them too much money, so the question is what’s next.” T-Mobile did state they added a record 2.4 million subscribers in the first three months of this year, its fourth consecutive quarter with over 1 million total net additions. These numbers seem promising, but how much more will T-Mobile do to remain in the competition without suffering more losses.
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