The final hurdle of the merger that will join T-Mobile and Sprint, the nation’s third- and fourth-largest wireless carriers, has been cleared. U.S. Judge Victor Marrero ruled in favor of the merger, rejecting the arguments against it. While a few steps remain – and while some of the plaintiff state attorneys general claim they may still fight – most industry experts believe the merger will proceed.
ISG sees the combination of T-Mobile and Sprint as a healthy change for the industry – creating a stable, relevant competitor to Verizon and AT&T in the 5G race. For one, the combined entity will be a powerful force pushing the new technology into rural areas. For another, the merged company will make a strong competitor in enterprise mobile solutions, an area of great interest to enterprise buyers. Sprint’s technology platform will enable a quicker build-out of 5G service availability – and quicker to market should equal more customers sooner.
Over the past few years, there has been little competition for AT&T and Verizon in the area of enterprise mobile services. Most large enterprises have been satisfied with two choices – choices their employees would most likely prefer for their own personal mobile services. And the simplicity of the options carried over into machine-to-machine and internet of things (IoT) business applications.
The demand for corporate mobile communications has grown exponentially as IoT and mobile devices have become true extensions of the typical enterprise network strategy. Sprint’s experience supporting enterprises is likely to accelerate business growth for the newly combined entity, and we expect many enterprise clients on the IoT-5G journey to take a closer look at the combined company. Sprint’s strategic investments in the corporate IoT market – including its “Curiosity IT” network, which enables IoT applications – will make the new company particularly attractive to enterprise customers.
Though Sprint’s enterprise wireline business has struggled to remain relevant in recent years, the company has been quietly reinforcing it, driving out inefficiencies. Investments in high-speed networking, better support teams, and new software-defined technology (along with its IoT strategy) are indicators that Sprint is doing its part to prepare the newly merged company to battle for enterprise share. Contact us to learn more.
