Meanwhile, T-Mobile CEO John Legere jeered Verizon Communications Inc.'s (NYSE:VZC) recent report calling it a “disaster of a quarter” and saying Comcast Corp.'s (NASDAQ:CMCSAC) wireless joint venture with Verizon was "the biggest non-announcement ever in the history of the wireless industry.”
And The Winner Is …
Merger talks are expected to resume after April 27 when an FCC quiet period expires following an auction of wireless spectrum. T-Mobile, the big winner of that auction with an $8 billion bid, is widely expected to be one of the first to engage in M&A talks.
According to Legere, "The inorganic and organic possibilities for the company are tremendous." Legere added, "We are interested in looking at some of the possibilities."
Some Possible Contenders
As far back as February Reuters reported that Sprint Corp. (NYSE:SB) controlling shareholder, SoftBank Group Corp, was preparing to engage in deal talks with T-Mobile's top shareholder, Deutsche Telekom AG as soon as the auction ended and the quiet period was over.
In addition to a potential deal with SoftBank, investors and analysts say T-Mobile could remain independent or merge with either DISH Network Corp. (NASDAQ:DISHC) or Comcast. T-Mobile has said it’s record-breaking airwave purchase would enable the company to "to compete in every single corner of the country."
Big Changes Coming
Legere also indicated he felt some big changes could be coming as companies like Alphabet Inc.'s (NASDAQ:GOOGC) Google and Amazon.com Inc. (NASDAQ:AMZNC) joined the telecom and cable service provider mix.
As for T-Mobile, the company plans to open 3,000 stores this year. Company management said the spectrum gains and the new retail outlets were a demonstration of T-Mobile’s growth. "There is this huge, pent-up energy because it's been over a year since people could have conversations," Legere said. "All content will go to the mobile internet," Legere added, saying, "nobody has the full portfolio of capabilities." This helped explain Legere’s contention that Google and Amazon would likely become bigger players in the future of communications.
Related: VERIZON SAYS MAKE AN OFFER
A Disrupter Is Born
Comments like those from Legere about content moving to the mobile internet have led some analysts to suggest T-Mobile may be the disrupter-in-chief when it comes to telecom. It is T-Mobile, after all that has forced AT&T (NYSE:TC) and Verizon to offer unlimited data.
Possessing a network built for unlimited use at decent speed, T-Mobile added 1.1 million post-paid smartphones last month. That works out to 4 years in a row of adding more than 1 million subscribers each quarter. Those are some impressive numbers.