T-Mobile and Sprint agree to merge, create giant to rival AT&T and Verizon

Enlarge (credit: T-Mobile)

T-Mobile USA and Sprint today announced an agreement to merge, a deal that would combine the US mobile industry's third and fourth biggest carriers to create a giant nearly as large as AT&T or Verizon Wireless. The all-stock merger deal would have T-Mobile acquire Sprint for $26 billion worth of stock, according to Reuters.

"The combined company will be named T-Mobile, and it will be a force for positive change in the US wireless, video, and broadband industries," the companies' announcement said.

But the deal will reduce competition, leaving the US with three major nationwide wireless carriers instead of four. The companies abandoned a merger attempt in 2014 when it became clear that Obama administration regulators wouldn't allow it.

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