T-Mobile, Sprint Cleared to Merge

T-Mobile and Sprint are officially tying the $26.5 billion magenta knot. Yesterday, a U.S. district judge all but consummated the merger by knocking down a challenge from more than a dozen state attorneys general trying to stop the tie-up.

What this means for 5G

The two carriers said the megamerger will help the new T-Mobile build its 5G network faster. The pair can pool different airwaves:

• T-Mobile's current "nationwide" 5G network relies on low-band spectrum, which brings modest 20% speed upgrades over 4G LTE.
• Sprint has ample mid-band spectrum holdings.

So far, Verizon and AT&T have prioritized deployments using mmWave 5G, which boasts the tech's true step-change boosts in speed and latency. But right now that 5G is confined to small sections of some U.S. cities. Both Verizon and AT&T are very interested in the FCC's forthcoming auction so they can pick up prime mid-band spectrum.

Bottom line: 5G buildouts now lie in the hands of three major U.S. carriers and Dish in a distant fourth. Critics say a consolidated wireless industry will lead to higher prices and worse service.