Mike Sievert, CEO of T-Mobile, introduces the new streaming platform ‘TVision’ and explains how it differs from other services.
T-Mobile US Inc. said its nearly-year-old merger with Sprint Corp will saddle up the combined company this year with more costs as its engineers move more subscribers to one network.
The Bellevue, Wash., Company said it would spend $ 2.5 billion to $ 3 billion before taxes would fold the stores, employees and network infrastructure it acquired from its one-time competitor into the new business. The company spent about $ 1.9 billion on such expenses last year.
T-MOBILE LOOKS FIT FROM ITS COST CUTTING PROGRAM
The extra burden boosted T-Mobile’s net income in the fourth quarter to $ 750 million, or 60 cents a share, compared to a previous annual profit of $ 751 million, or 87 cents a share. The last quarterly result included $ 686 million in merger costs. Revenue rose to $ 20.3 billion from $ 11.9 billion a year earlier before the company acquired Sprint.
T-Mobile finalized its acquisition of smaller rival Sprint last year after a two-year legal campaign that culminated in a federal court ruling.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| TMUS | T-MOBILE US | 130.60 | +1.23 | + 0.95% |
The merger has left the US with three major companies fighting each other over the past year and a collection of smaller brands for new customers. In January, T-Mobile reported a net profit of 824,000 phone payments after installments in the fourth quarter. Competitors AT&T Inc. said 800,000 of the main customers had been added. Verizon reported a net profit of 279,000 phone connections in arrears.
T-MOBILE MAKES EMPLOYEES MONTHS AFTER $ 26 BILLION SPRINT MERGER
T-Mobile has also continued to add devices other than mobile phones, including tablets and Internet hotspots, to its mobile network. It reported a net profit of 794,000 such postpaid connections in the fourth quarter.
The carrier said Thursday that it has made more progress in integrating Sprint’s customer base, with 25% of Sprint – paid customer traffic already flowing across T-Mobile’s systems, representing about 4 million subscribers.
GET FOX BUSINESS ON THE GO by clicking here
T-Mobile executives are counting on versatile mid-range wireless loop licensing acquired with the Sprint acquisition to boost the growth of their business for years to come. Engineers have already put some of the valuable spectrum to work with the fastest fifth generation, or 5G, wireless service in much of the country.
Managers said the extra cost of bringing the two companies under one roof would be more than covered by the future savings of a simpler organization. They also pointed to faster wireless downloads as a reason why the company’s revenue will continue to improve.
READ MORE ABOUT FOX BUSINESS BY CLICK HERE
“In the past, we’ve mostly competed on price, to be honest,” CEO Mike Sievert said during a live conference. “Now, we have a premium product.”