U.S. wireless companies T-Mobile and Sprint Corp said on Sunday that they have reached a 26.5 billion U.S. dollars merger agreement.
The combined company merged by the nation's third and fourth largest wireless companies, would become a stronger competitor against Verizon Communications Inc and AT&T Inc, industry leaders which occupied the No.1 and No.2 in the wireless market in the United States.
However, customers showed their concerns that lesser competitors in the market could result in higher price, while unions are concerned about potential job losses.
John Legere, chief executive of T-Mobile, who would also the CEO of the combined company, said the combination will create a fierce competitor to deliver more for consumers and businesses with lower prices.
In the terms of employment, Legere said that the new deal will create more jobs and improve service in rural areas. He tweeted that "last year we added 27,000 jobs associated with our growth, and there is no reason we can't grow at the same rates."
The merger talks between the two wireless giants was started from four years ago when the first round of talks was ended with failure in 2014, amid resistance from the Barack Obama's administration for the reason of antitrust concern.
The companies said that they expect U.S. regulators would see the benefits of the deal and added that the merger could force others to accelerate their investments.
"This is not a case of going from four to three wireless companies, there are now at least seven or eight big competitors in this converging market," said Legere.
The combined company merged by the nation's third and fourth largest wireless companies, would become a stronger competitor against Verizon Communications Inc and AT&T Inc, industry leaders which occupied the No.1 and No.2 in the wireless market in the United States.
However, customers showed their concerns that lesser competitors in the market could result in higher price, while unions are concerned about potential job losses.
John Legere, chief executive of T-Mobile, who would also the CEO of the combined company, said the combination will create a fierce competitor to deliver more for consumers and businesses with lower prices.
In the terms of employment, Legere said that the new deal will create more jobs and improve service in rural areas. He tweeted that "last year we added 27,000 jobs associated with our growth, and there is no reason we can't grow at the same rates."
The merger talks between the two wireless giants was started from four years ago when the first round of talks was ended with failure in 2014, amid resistance from the Barack Obama's administration for the reason of antitrust concern.
The companies said that they expect U.S. regulators would see the benefits of the deal and added that the merger could force others to accelerate their investments.
"This is not a case of going from four to three wireless companies, there are now at least seven or eight big competitors in this converging market," said Legere.
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