T-Mobile reports solid gains ahead of potential Sprint merger (TMUS)

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October 23, 2017 9:26 PM

T-Mobile reported solid customer and revenue growth during Q3 2017, adding 1.3 million net subscribers, and growing services revenue 7% year-over-year to reach $7.6 billion

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T-Mobile solid customer and revenue growth during Q3 2017, adding 1.3 million net subscribers, and growing services revenue 7% year-over-year to reach $7.6 billion.

The company skipped its usual earnings call, opting instead to announce the quarter’s results via a vlog and online statement.

The vlog for the earnings comes as T-Mobile reportedly prepares to announce its merger with Sprint — the fourth largest carrier in the US. The two companies are seeking to join forces to become more competitive against U.S. wireless carrier leaders Verizon and AT&T.

U.S. smartphone penetration is approaching saturation, causing mobile carriers to fight over each other’s subscribers.
Merging would give the newly formed company a share comparable to Verizon’s and AT&T’s.

This isn’t the first time the two companies have entertained a potential merger. Softbank, Sprint’s parent company, attempted to acquire T-Mobile back in 2014, however, strict regulations from the Federal Communications Commission (FCC) muted the company’s efforts.

This time around, however, the environment is looking more favorable for a telecom merger. With the induction of President Donald Trump, the formerly democratic FCC, led by chairman Thomas Wheeler, handed over the reins to GOP chairman Ajit Pai. The new, less involved regulatory body, has indicated that it would roll back some of the more stringent regulations of the previous administration’s FCC.

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