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Death of the T-Mobile-Sprint merger is good for T-Mobile, bad for customers

December 1, 2017

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The rumored T-Mobile-Sprint merger is officially done. The two parties couldn’t agree on a deal, and a merger that could’ve killed all semblance of competition in the US wireless market is mercifully non-existent.

But according to telecoms analyst Craig Moffett, the merger could have knock-on effects for anyone who owns cellphone plans that are the opposite of what we were hoping for.

“The breakup of the Sprint/T-Mobile deal will ultimately prove to be good news for the sector,” Moffett said in a note to investors seen by Barrons. “Robbed of the prospect of a merger — at least for now — Sprint will now have to focus on sustainability. That means less, not more, promotionality…all players will benefit if Sprint, as seems likely, adopts a less promotional pricing posture as they attempt to balance the competing priorities of debt service and network reinvestment.”

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