- Recent research and press articles support the Sprint – T-Mobile merger, claiming that the consumer would benefit from the arrival of a third major carrier.
- We do not adhere to the analysis that such a merger would spark price cuts for consumers, in view of what has been going on in Europe.
- Anyway, we believe that the long-term pricing environment should be similar in both merger approval and non-approval scenarios. We do not see why the regulator would block the deal.
- The risk/reward is highly attractive: in the worst case, the downside would be limited, while in the best case, the upside would stand around 50%.