Breakingviews - Capital Calls: T-Mobile US keeps the heat on

  • 3/12/2021
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SUPER CHARGED. Nearly a year since T-Mobile US and Sprint closed their merger, the $157 billion company led by Mike Sievert is delivering on its promises of synergies and then some. It could be unwelcome news for rivals Verizon Communications and AT&T. T-Mobile said on Thursday that it unearthed additional cost savings by cutting marketing expenses, consolidating IT and the like. It now expects to achieve $7.5 billion in synergies in 2 years, up some 25% from the original $6 billion it pegged when the deal was announced in 2018. In turn, T-Mobile is forecasting to return some $60 billion to investors in share buybacks in 2023-2025. T-Mobile also pledged that the merger would result in a more competitive market for 5G connections. Bernstein estimates that T-Mobile can more than double its customers from about 20 million in 2020 to nearly 45 million in 2025 targeting home broadband and enterprises – typically Verizon and AT&T territory. The telecom wars show no sign of a truce. (By Jennifer Saba)

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