Sprint Nextel Corporation

Thanks to nearly 52 million to subscribers, the company is the third in the number of subscribers in the USA after AT&T and Verizon Wireless. The headquarters of the company is based in Overland Park, Kansas.

History

The Sprint company was created in 2005 as a result of the transaction on merge to Nextel Communications on 35 billion dollars.

2018: T-Mobile buys Sprint for $26 billion

On April 29, 2018 T-Mobile and Sprint (take the third and fourth places in the list of the largest cellular operators of the USA) officially announced merge. It is not the first attempt of the companies to integrate.

Under the terms of the agreement, T-Mobile buys Sprint for $26 billion. Market capitalization of the united company will make $146 billion. For comparison, AT&T and Verizon operators are estimated at 216 and 212 billion dollars respectively.

T-Mobile and Sprint announced creation of the new company

I am glad to report that T-Mobile and Sprint reached the agreement on creation of the new company — larger and strong competitor who will become a factor for positive changes for all American consumers and business — the chief executive of T-Mobile John Ledger who will head the united company said.

He also noted that after the company merger it is going to create "network with the greatest capacity in the history of the USA". At the joint operator will be there are more than 127 million subscribers and over 200 thousand jobs. Labor unions are afraid that as a result of the transaction not less than 20 thousand can be dismissed human.

For merge of T-Mobile and Sprint it will be necessary to get approval from the American regulators which will fixedly consider this transaction as the companies are among market leaders of services of cellular communication.

It is already the second attempt of T-Mobile and Sprint to merge the assets. The first turned back failure in 2014 after the administration of U.S. President of Barack Obama made an antimonopoly complaint to the transaction.

By April 30, 2018 the German Deutsche Telekom owns 63% of stocks of T-Mobile whereas the Japanese Softbank possesses a 84.7 percent share in Sprint. It is supposed that 42% of securities of the united company will be received by Deutsche Telekom and will be able to nominate in Board of Directors of 14 members, and SoftBank will own 27% and will appoint four representatives in council.^[1]

2012: The Japanese Softbank buys Sprint Nextel. Acquisition of Clearwire

In October, 2012 the Japanese Softbank announced intention to acquire 70% of stocks of the operator of Sprint Nextel for 20 billion dollars. In case of a successful completion of this transaction it will lead to education of one of the largest telecommunication operators in the world.

The agreement will allow Softbank which is aggressively promoting the company services to expand presence in the market of the USA and to turn into global force, having become the third largest telecom operator of turnover in the world. Sprint the transaction will help to receive 8 billion dollars of the new capital and to considerably improve the financial position.

"Before us the widest both internal, and external opportunities for all the time of my stay in Sprint open now" — the CEO of the company Dan Hesse noted during the news conference in Tokyo. Sprint wishes to repeat in the house market the ascension similar to what was made by Softbank company, earlier being in the third place and far lagging behind leaders too. "Here to us is to what to learn from them" — Hesse^[2] specified^[2].

Masayes the Dream, the CEO of Softbank, said the following: "At the solution of a difficult task you face various risks. And it will be hard for us to cope with this task in America. But we trust in the forces".

The Dream connects the perspectives with experience of creation of high-speed networks which the companies managed to be purchased in Japan. "In America networks work much more slowly, without reaching also a half of that speed to which we got used in Japan — he emphasized. — And in ensuring high speed we see the chance".

Analysts believe that the transaction will stir up the mobile market of the USA in which two large operators dominate today: AT&T and Verizon Wireless. The Softbank company which received the status of the mobile operator only six years ago already doubled the number of base of the subscribers in Japan, applying aggressive price policy and creative marketing.

The agreement promises monetary injections and Sprint companies which, as well as Softbank, is engaged in creation of own high-speed network. There is a sense to try to implement in the USA some technologies, already today with success the specialized payment cards and mobile television used in Japan, for example. The considerable benefit can be taken also from scales of the new enterprise.

Having purchased Sprint, Softbank will probably try to reach economy by the further growth of scales. The main phone in both companies is iPhone, in both infrastructure of Ericsson is used.

According to Hesse, Sprint already signed successful sales contracts of iPhone. These contracts promise to make profit for the next several years.

In the news arriving from Japan it is said that the management of Softbank intends to use the positions in Sprint for purchase of MetroPCS Wireless company which in the same time is actively cajoled by T-Mobile.

Kester Mann, the leading analyst of CCS Insight company, considers that transactions between Softbank and Sprint and also between T-Mobile and MetroPCS will have positive character for consumers of the USA as pressure upon Verizon and AT&T as a result will increase.

• In December, 2012 the Sprint Nextel company, the third largest cellular operator of a subscriber base in the USA, announced signing of the binding agreement about purchase of 50% of stocks of Clearwire.

Within the concluded arrangements Sprint will pay shareholders of Clearwire $2.97 for each action (at the moment Sprint already owns 50% of the company). Transaction amount will be $2.2 billion.

The transaction estimates Clearwire at $10 billion, including debt and obligations for lease of frequencies ($5.5 billion), said in the official statement.

In Sprint which services 56 million clients for December, 2012, believe that the transaction will help them to correct a situation. As the CEO of Sprint Dan Hesse noted, it "will allow to offer clients new products, more wide choice and better service"^[2].

2011

Sprint's Network Vision Creates 4G Choices. How Is Clearwire Affected? (Комментарии J.P. Morgan Securities 24.02.2011)

Notes