T-Mobile Sprints Towards Smaller Carriers to Rally Deal Support
August 31, 2018
Telecom giant T-Mobile plans to persuade regulators to approve its pending $26 billion merger with Sprint, by leveraging smaller wireless carriers that use its network. If this deal is consummated the newly minted company would have more than 127 million customers. This would leave the U.S. wireless market dominated by three national players instead of four and, perhaps leave budget conscious consumers with higher prices and fewer options.
The Breakdown You Need to Know
CultureBanx has questioned where this deal leaves black consumers in the wireless carrier race? T-Mobile and Sprint sell their airwaves to smaller wireless carriers that primarily operate in the pre-paid space, which gnerally serves low-income and minority customers. Currently T-Mobile has 38% of the U.S. pre-paid market, while Sprint has 16%, according to S&P. Now if you look at the breakdown by race, Nielsen’s Digital Media Vice President Jerry Rocha found that 15% of Sprint users and 14% of T-Mobile users are black.
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