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T-Mobile and Sprint : A fusion that benefits advertising

T-Mobile and Sprint : A fusion that benefits advertising

Although the Justice Ministry may try to block the proposed merger between T-Mobile and Sprint (not yet concluded), the chairman of the Federal Communications Commission, Ajit Pai, has given his blessing to the transaction earlier this week.

If T-Mobile and Sprint manage to merge, they will have approximately 126 million subscribers and will become the third largest telecom operator in the United States, behind Verizon and AT & T, which have 150 and 141 million subscribers, respectively.

And we know what happens when telecom operators reach their goal – they start thinking about data monetization and targeted advertising.

But ambition and scale do not necessarily mean success. Despite the $ 9 billion spent on AOL and Yahoo, Verizon Media (formerly Oath) saw its revenue drop by more than 7% in the first quarter to $ 1.8 billion. The jury still has not decided if AT & T will prosper in the media sector. .

“The big telecom companies all want to become Google, Facebook or even Amazon and, at least on paper, they should be able to do it,” said Mitchell Reichgut, CEO of Jun Group.