Can You Hear It Now? Everything To Know About The Sprint, T-Mobile Merger

A judge has approved the long-sought merger of T-Mobile US Inc. TMUS and Sprint Corporation S. Here's what to know about the deal marrying the third- and fourth-largest cell carriers in the United States.

The Deal

T-Mobile, the larger carrier, paid Sprint shareholders $26.5 billion in an all-stock deal for the smaller company. The deal was approved by federal officials last year, but a group of state attorneys general sued to block it on antitrust grounds. On Tuesday, a judge ruled the merger can proceed.

Technically, there could be a couple more hurdles. The attorneys general could appeal and the conditions spelled out in the existing Justice Department approval still need the OK from one more federal judge.

What It Means For The Mobile Landscape

The combined company will have about 125 million customers, which means it will still be third behind Verizon Communications Inc. VZ, the biggest at about 150 million, and AT&T Inc. T, which has about 140 million.

What It Means For T-Mobile And Sprint Customers

Most Sprint customers will switch to T-Mobile, though the timeline for how long that will take isn't yet clear. Customers who are on pay-as-you go Boost Mobile plans will become customers of Dish Network Corp DISH, which is creating a new cellular network. T-Mobile says it won't raise prices for at least three years.

What It Means For The 5G Transition

The combined company says it can cover 97% of the country with its new faster 5G network within three years. That means it will cover more rural areas that currently don't have good broadband coverage, a key issue for federal regulators.

Stocks Make Big Moves

Sprint shares skyrocketed on Tuesday, trading up 72.5% to $8.28. T-Mobile shares were also on the rise, up 10% to $93.

Cell tower companies such as American Tower Corp AMT, Crown Castle CCI and SBA Communications Corporation SBAC were also moving.

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