T-MOBILE’S UNEXPECTED MANEUVER IN THE WIRELESS INDUSTRY

Abstract

This case study summarizes T-Mobile’s strategic decision-making process in the proposed acquisition of Sprint Corporation, outlines recent transitions in the telecommunication industry, and evaluates the potential merger benefits and consequences. T-Mobile, then the fourth-largest wireless service provider in the US, desired to merge with Sprint, the third-largest wireless provider in the U.S., to close the existing competition gap between them, AT&T, and Verizon. This case examines the structural challenges and multi-faceted decisions that T-Mobile CEO John Legere contemplated prior to the Sprint merger to develop a 5G network capable of reaching nearly 99% of U.S. subscribers. This case may be used in an undergraduate business course to examine the obstacles that industries are faced with when undergoing an acquisition. In the finance or health sector, mergers have occurred to narrow the competition gap. Furthermore, the case can be a tool for students to identify an industry's strengths and weaknesses and the strategic decisions that large corporations have to make when faced with financial challenges.