The announcement described the new company as “a supercharged Un-carrier that will deliver a transformative 5G network.” Indeed, the new company will have 14 times more capacity in the next six years than T-Mobile alone has today, which according to the statement should allow the company to “leapfrog the competition.”
What’s more, the new T-Mobile aims to offer customers access to average 5G speeds up to eight times faster than current LTE in just a few years and 15 times faster over the next six years.
Within six years, the New T-Mobile plans to provide 5G to 99% of the U.S. population and average 5G speeds in excess of 100 Mbps to 90% of the U.S. population.
“New T-Mobile’s wireless in-home broadband service will overcome the obstacles to extending traditional wireline access by blanketing high-capacity coverage over previously difficult to serve areas. Its network will deliver 100+ Mbps speeds for wireless broadband to 90% of the population and offer in-home service to millions of the country’s households in the next six years” explains the announcement.
T-Mobile US, Inc. is the parent of the combined company and its shares will continue to trade on the NASDAQ Global Select Market under the symbol “TMUS”. The stock has a bullish Strong Buy analyst consensus on TipRanks, with an average analyst price target of $102 (20% upside potential). (See T-Mobile stock analysis on TipRanks)
The company also announced that with close of the merger, the CEO role has transitioned from John Legere to Mike Sievert ahead of schedule. Sievert, who has served as CEO of T-Mobile since 2012, commented “During this extraordinary time, it has become abundantly clear how vital a strong and reliable network is to the world we live in. The New T-Mobile’s commitment to delivering a transformative broad and deep nationwide 5G network is more important and more needed than ever.”
Under the terms of the transaction, Sprint shareholders will receive a fixed exchange ratio of 0.10256 T-Mobile shares for each Sprint share, or the equivalent of approximately 9.75 Sprint shares for each T-Mobile share.
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