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Newly released documents show T-Mobile considered a merger with the media giant Comcast, in addition to its merger with Sprint, in a plan to create one of the biggest companies in the world

Dec 27, 2019, 04:01 IST

T-Mobile has been planning a merger with Sprint for years in a bid to better compete with competitors like Verizon and AT&T. The merger was given the green light by the Federal Communications Commission in November, but it has been met with intense pressure by state and federal regulators.

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As part of the scrutiny into T-Mobile, new documents made public on Monday, and first reported by The Verge, revealed a roadmap for the company, including a potential merger with the telecommunications and media giant Comcast.

The documents, from December 2015, show that T-Mobile had considered a two-step merger: First, merge with Sprint, then merge with a cable company, with the top choice being Comcast.

The roadmap, titled "Defining a Winning Business Position for the US Business Model," appeared to be presented to executives of the company and was compiled in part with the management consulting company McKinsey & Co. T-Mobile initially tried to withhold the documents from the public, arguing that the report's authorship by a third-party, in this case McKinsey, required confidentiality. That argument was not accepted and the documents were made public on Monday.

The logic T-Mobile provided for a subsequent merger with Comcast offers a rare, candid look into how the company thinks about its US business in the long term.

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The document points to T-Mobile's worth to Comcast: "Move into mobile might be only natural option for Comcast to grow," it said. "Preferred Comcast moves are unlikely to get approval."

In laymen's terms, T-Mobile sees its value to Comcast as a means of skirting federal regulators' concerns with conglomerates. Rather that Comcast having to move into mobile markets itself, the cable giant could simply merge with T-Mobile as a side-door in.

The document showed that the mobile carrier also considered mergers with other major names in cable, including Brighthouse and Charter. However, it's unclear how - or if - the company's position has changed since late 2015 when the report was issued, or how seriously the report was taken by the company at the time. T-Mobile representatives did not respond to a request for comment.

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