Sprint moves on following another failure to merge with T-Mobile

Dan Weinbaum
November 07, 2017 - 5:46 am

Business analysts are wondering what is next for Overland Park-based Sprint and T-Mobile now that another attempt at a merger has fallen through. 

Negotiators called it quits over the weekend after they determined they could not develop a plan that would benefit stockholders.

A merger may not have been for the best, at least from a Kansas City perspective.

"It probably would've cost more jobs in the kansas city area," said Chris Kuehl, KMBZ chief economist and principal at Armada Corporate Intelligence. "It was going to favor T-mobile."

Both companies now move on to Plan B, with Sprint needing to build itself up to a better competitive footing, Kuehl said. Failure to do so would mean jobs would be lost anyway. 

"Most likely Sprint will try to diversify, try to become a little more beefy in the areas that it can be," Kuehl said. 

Sprint officials told the Wall Street Journal it would spend $5 billion to $6 billion annually on its network over the coming years to improve itself as a standalone company. Sprint, the nation's fourth-largest wireless carrier, currently spends about $3.5 billion to $4 billion a year on network improvements. 

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