The T-Mobile and Sprint merger: The numbers and assumptions you need to know

T-Mobile and Sprint are merging to create a big play for 5G by combining networks and wireless spectrum. However, this chore will take three to four years.
Written by Larry Dignan, Contributor

Video: Businesses won't fully exploit 5G until it works in the wild

T-Mobile and Sprint are merging in a $26.5 billion deal that is wrapped around the 5G dream, US 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. (See also: T-Mobile and Sprint to merge, finally, strutting 5G clout)

Read also: What is 5G? Everything you need to know about the new wireless revolution

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 three to four 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 three to four years.

$1 billion

That's the sum of run rate savings from merging the back office, IT, and billing.

$40 billion

Rough estimate the new T-Mobile will invest over three years on integrating networks and building out 5G. (See also: 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 three to four 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 three to four 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."

Three years or less

The time it will take to migrate Sprint customers to the T-Mobile network without degradation.

Gallery: Top LTE smartwatches

Previous and related coverage

T-Mobile launches T-Mobile One Military and other initiatives for those who served

US wireless carriers have discounts for military families and today T-Mobile announced more expansive discounts and several initiatives to support active duty members, veterans, and their families.

T-Mobile gets into paid TV market

It's acquiring a TV tech startup that will help it get into the TV market, with service starting in 2018.

Editorial standards