Japanese telecommunications and Internet Corporation, SoftBank Corp will be spending $20.1 billion to materialize its plans to help the biggest wireless market player in the United States, Sprint Nextel Corporation. In return, a 70 percent stake in the US carrier will be granted to the Japanese firm.
With an intention to speed up the rollout of a faster network, Sprint considers the $20 billion takeover deal with Softbank. Some analysts claim that a faster network could aid Sprint halt AT&T and Verizon’s duopoly dominance. Apart from the 70 percent stake, Sprint could also provide Softbank with a platform to do in the United States.
Some experts also forecast Softbank’s purchase to offer a snazzier marketing and cheaper cell phone plans to Sprint subscribers.
In 2006, Softbank also bought Vodafone Group PLC’s Japanese operations where it released a series of prominent, cheap basement plans, denting the bigger rivals.
A Sprint spokesman said, Softbank’s deep pockets will allow Sprint to invest in its network to expedite the rollout of its faster 4G long-term evolution (LTE) services. In addition, the Japanese firm’s acquisition will also help the US carrier become stronger and robust amidst the stiff competition these days.
Program vice-president of mobile services at IDC Research commented a faster network that is offered by Softbank to Sprint will certainly help the carrier break the so-called “duopoly dominance” currently seized by Verizon and AT&T.
Marketing experts then hope that the merger of Softbank with Sprint will help the latter firm come up with more enthralling and sharper ads in the future, especially in terms of its “truly unlimited plans.” Sprint, however, declined to utter any comment about its future advertising campaign. Pertinent sources also claimed that the US carrier has no immediate plans of taking over Clearwire Corp amidst its recent deal with the Japanese firm.
Softbank Corp is a Japanese telecom and Internet company offering broadband, fixed-line communications, e-Commerce, broadmedia, finance media and marketing, technology and Internet business. Its corporate profile is comprised of various other companies including IDC Frontier, SoftBank Creative, Gungho Online Entertainment and SoftBank BB, a Japanese broadband company.
SoftBank’s 70 percent acquisition of the United States’ telecommunications company Sprint Nextel Corporation (Sprint) for $20.1 billion was initially announced on October 14th, 2012. The deal is believed to be finalized by the second quarter of 2013.
Source: Phone Arena