The T-Mobile and Sprint merger: The numbers and assumptions you need to know
Video: Businesses won't fully exploit 5G until it works in the wild
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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
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.
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