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T-Mobile Acquired by Sprint?

Will t-mobile get bought by sprint?There is a rumor going around that Sprint is planning on buying T-Mobile in the near future. This is actually a very real possibility, so the effect that would be felt by traders and customers alike needs to be examined closely. Sprint (publicly traded under the symbol S) is currently the 3rd largest cell phone provider within the U.S. Recently, they were acquired by the larger company SoftBank, which has a reputation for picking up smaller companies. Well, apparently, one cell provider wasn’t enough, because now they are thinking about taking on T-Mobile, too. This would consolidate the number of major players within the U.S. and could have devastating results for customers.

T-Mobile (TMUS) has done a lot to rid itself of the bad image that cell phone carriers have assumed. Still, they are ranked as the number four carrier in the U.S., right behind Sprint. Eliminating the competition for Sprint would do a huge favor to them as a company, but what would it mean for those that place their money within the company? To figure this out, you need to look at the long term customer impact. Consolidating two companies would definitely increase revenue, but the truth is, if it had a negative impact upon customers, the money would quickly disappear. So in all actuality, if these concerns are correct, it is very likely that there would be a big jump in stock prices, but that they would eventually drop off again. For a short term perspective, this change in direction could be difficult to predict, so taking a long position right from the start and exiting early is probably the best approach.

Binary options traders have a good situation here. They can easily partake in short term trading with very little risk. They also have the chance of higher rewards, even if the markets don’t necessarily move as generously as they are predicted to. That’s one of the best things about binaries–you only need to be right by a little bit to feel the full rewards of them.

Sprint and T-Mobile are major companies in the United States, but even bigger than these are Verizon (VZ) and AT&T (T), and these are much more popularly traded in the binary markets. How do these actions by Sprint affect these two companies? The good news is that they could prompt changes from above. Verizon and AT&T have been dealt a lot of criticism because of their high prices and lack of help for customers. If T-Mobile is able to keep improving the customer experience, there is a good chance that the bigger companies will have to become more customer friendly in order to keep business moving forward. This might hurt in the short term, but will help more in the long term. However, if T-Mobile is actually acquired, there is little chance that this industry level change will happen and there will likely be very little difference within the top two cell carriers’ stock prices.

AT&T did try to purchase T-Mobile back in 2011, but was blocked by industry regulators. This time, things are a little different because SoftBank is a Japanese based company and has quite a bit of experience when it comes to lobbying for such a situation. In other words, while it is not yet a definite possibility, it is a likelihood and one that even short term traders need to be prepared for. The good news for everyone is that change is still a possibility within this sector, and that could eventually prove to be beneficial to investors and also customers.
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