Technology Stocks

Merger Will create 11,000 New Jobs by 2024, T-Mobile Us Inc (NASDAQ:TMUS) CEO Tells Congress

T-Mobile Us Inc (NASDAQ:TMUS) closed its day at $72.52 in yesterday’s trading session on a volume of 3.7million shares.

T-Mobile CEO, John Legere while defending the proposed merger with Sprint told the Congress on Wednesday last week that the merger will lead to the creation of new jobs as well as providing better broadband to rural Americans at cheaper rates contrary to critics seeking to stop the merger.

The two telecommunication companies have agreed to a $26 billion merger and are awaiting regulatory compliance to finalize the process. Both companies are performing fairly well in the stock market if their most recent closing prices are anything to go by.

Merger Parties’ Stock Performance

T-Mobile Us Inc (NASDAQ:TMUS) stock, for instance, surged o.65% to close at $75.52 scoring a market capitalization of $61.66 billion. On the other hand, Sprint Corp (NYSE:S) closed at $6.33, representing a 0.40% increase from its opening price with a market capitalization of $25.82 billion.

The proposed merger deal could fail to go through should the parties be found culpable of colluding to suppress competition, hike broadband prices and oppress low-income Americans relying on their services.

T-Mobile CEO Promises Goodies

 In T-Mobile’s defense through its CEO, the company argues that besides creating employment to thousands of individuals, the merger would lead to an acceleration of the process of building a world-class nationwide 5G network bigger than that of the nation’s leading providers.

T-Mobile further states that contrary to naysayers, it shall not only refrain from increasing broadband prices, but it shall endeavor to bring users a better coverage with enhanced signal quality. In other words, users will pay less for more quality coverage.

Should the companies be allowed to proceed with the merger, the resultant company would become big enough to challenge the nation’s leading wireless carriers, AT & T and Verizon.

Also, Legere assured the Congress that his company does not use Chinese-Manufactured Huawei networking gears (highly discouraged by US security experts) and does not intend to use them to create 5G networks after the merger.

“Let me be clear—we do not use Huawei or ZTE network equipment in any area of our network. Period. And we will never use it in our 5G network,”- Legere.

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