Antitrust enforcement staff members recently told T-Mobile and Sprint executives they are unlikely to approve the telecom firms' proposed merger as it is currently structured. Soon after hearing that, Sprint, which has touted adding new wireless connections for six straight quarters, said that many of those gains were free lines or existing customers that switched services. With its proposed merger under pressure, the wireless carrier told regulators that its performance isn’t as strong as it appears and it will struggle to operate as a stand-alone company, reports the Wall Street Journal
(18 April, Krouse, FitzGerald). In a regulatory filing, the company said the recent gains in so-called postpaid connections—a closely watched measure of monthly accounts not paid in advance—were driven by free lines given to existing Sprint customers. The tally also includes tablet connections and customers switching their phones from Sprint’s prepaid services. Sprint also cited an analyst report in the filing, suggesting that even entering into chapter 11 bankruptcy protection to restructure its balance sheet would not help long-term.
From "Sprint Tells Regulators Its Business Is Worse Than Earlier Portrayed"
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