T-Mobile and Sprint are merging in a $26.5 billion deal that is wrapped around the 5G dream, U.S. technology leadership, disrupting multiple industries and creating jobs.
The combined company will keep the T-Mobile name and John Legere will be CEO. Think Uncarrier innovation and price reduction at scale.
Let’s give T-Mobile some credit. The company could sure spin a good narrative with its press release. But before you get sucked up into the T-Mobile-Sprint dream, it’s worth pondering the numbers. T-Mobile and Sprint to merge, finally, strutting 5G clout
Here’s a look at T-Mobile and Sprint by the numbers:
3 to 4 years
T-Mobile will create more $6 billion in synergies, but this integration will take 3 to 4 years. In fact, most of the assumptions behind the new T-Mobile play out over that time frame.
Simply put, the network, sales, service and marketing and all IT and back office functions will be merged at the minimum of 3 to 4 years.
That’s the sum of run rate savings from merging the back office, IT and billing.
Rough estimate the new T-Mobile will invest over three years on integrating networks and building out 5G. Digital Darwinism: Businesses won’t fully exploit 5G until it works in the wild
$75 billion to $76 billion
Pro forma revenue for 2018 with annual growth rates getting the company to $81 billion to $86 billion in 3 to 4 years.
$63 billion to $65 billion
Net debt for the combined company, or 2.9 times EBITDA. Total debt will be $75 billion to $77 billion.
$50 billion to $52 billion
Net debt in 3 years to 4 years.
$6 billion to $10 billion
The new T-Mobile ultimately expects to get to net debt of $6 billion to $10 billion in the “longer term.”
3 years or less
The time it will take to migrate Sprint customers to the T-Mobile network without degradation.