You are here: Home » Mergers and Acquistions »

Sprint Keeping Unlimited Data with New Buyer

By Lynn Walford 10/15/2012

Sprint announced today that it had sold 70% of its business to SoftBank. Many are wondering if this deal will change policies at Sprint. SoftBank paid over $20B for its equity.

"Unlimited data is a key differentiator and we have not announced any plans to stop offering them," a spokesperson told LightReading Mobile.

Some contend that it will still be possible for Sprint to stopped offering unlimited data like AT&T and Verizon did. Sprint is slowly rolling out its 4G LTE network, Softbank's experience with 4G LTE should help.

Softbank has experience in gaining market share in mature markets.

According to the news release the SoftBank transaction is expected to deliver the following benefits to Sprint and its stockholders:

Provides stockholders the ability to realize an attractive cash premium or to hold shares in a stronger, better capitalized Sprint.
Provides Sprint with $8.0 billion of primary capital to enhance its mobile network and strengthen its balance sheet.
Enables Sprint to benefit from SoftBank’s global leadership in LTE network development and deployment.
Improves oprating scale.Creates opportunities for collaborative innovation in consumer services and applications