News that the Justice Department approves the $26 billion Sprint and T-Mobile merger that coincided with the Q2 income call from the latter carrier. When questioned about MVNOs and how the merger will affect those deals, T-Mobile managers promised ongoing assistance for current partnerships, such as Google Fi.
In the United States, the Google MVNO is leveraging US Cellular, Sprint, and T-Mobile. Both deals Fi has with the latter carriers will be “inherited by the new company,” with T-Mobile managers (h / t Dieter Bohn) saying that it “won’t be killing or canceling any MVNO deals.”
Google expanded its MVNO deal with Sprint earlier this year to offer 5 G going forward on compatible devices. That service will be available on “Sprint 5G compatible” devices that are “Designed for Fi.”
In reality, T-Mobile argued that the new business would be a “larger MVNO friend than stand-alone,” a clear reference to AT&T and Verizon. Mike Sievert, COO, said:
CEO John Legere used a stadium analogy to clarify why the Sprint and T-Mobile merger provides an incentive to work with MVNOs to guarantee full use of the network:
They also disclosed that present deals with MVNO are “easily handled with a small percentage of our network,” with efficiency only enhancing as service increases over the next three years.