US mobile network operator, Sprint, has reported a significantly smaller drop in subscribers than analysts had predicted.
Sprint posted a 115,000 subscriber drop for the quarter ended 31st December 2019, significantly beating analysts’ expectations that it would haemorrhage close to 160,000.
Sprint is currently awaiting the outcome of a court case to approve its proposed $26.5 billion merger with T-Mobile. Should the merger be approved, it would create the US’ third biggest telco with the scope and scale to challenge the country’s incumbent heavyweights, Verizon and AT&T.
Sprint has seen its subscriber base continue to dwindle ahead of the proposed merger, which has already received regulatory approval from the FCC and the Department of Justice. However, the deal now faces a law suit, brought by the attorney generals of a group of disgruntled US states, who oppose the merger on numerous grounds. The main point of contention being the impact that the merger would have on the local job market.
Sprint and T-Mobile had been going state to state, issuing assurances and cutting concessions prior to the commencement of the court case.
A decision is expected in the coming weeks, as the court case is expected to come to a relatively speedy resolution.