Successful Sprint Acquisition of T-Mobile US is the Beginning, Not the End

If Sprint does make an acquisition offer for T-Mobile US, and if Sprint somehow manages to gain approval from the Department of Justice and Federal Communications Commission, and if its management is able to execute in the manner of T-Mobile US, rather than Sprint, the new company still will trail Verizon Wireless and AT&T Mobility, but close the gap significantly.

The combined company still will face issues, ranging from integrating the two firms operationally to somehow getting the historically sluggish Sprint operation to move as fast a T-Mobile US has proven recently.

Anyone familiar with Sprint will recognize the longer-term issue, namely a corporate culture that historically has been slow-moving and "traditional," compared to most other firms of its size in the industry. 

So even if air interfaces, network coverage, a rationalized retail sales network and other operational issues are resolved over a few years, and even if a more-agile leadership is put into place, some might wonder how fast the traditional Sprint culture can change. 

Softbank already seems to have encountered the problem, which might explain why Sprint has not attacked as aggressively as many believed would happen after the Softbank acquisition of Sprint, essentially losing the initiative to T-Mobile US. 

If an acquisition offer emerges, and if it is approved, the challenge of catching AT&T and Verizon still will remain. Doubtless, there will be continuing questions about whether Sprint actually can change enough to sustain a disruptive and successful challenge. 

Culture, not just scale and financial assets, matter. 

source: Business Insider
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