Unwilling to turn control of Sprint over to rivals at T-Mobile US, Sprint’s chairman vowed Monday to spend more money on the Overland Park, Kansas-based company’s wireless network.
Merger talks between Sprint and T-Mobile, the nation’s No. 4 and No. 3 wireless companies, collapsed over the weekend principally over terms that would have left T-Mobile’s interests in control of the combined businesses.
“Now that the consolidation discussion is over, we will invest in the network,” Sprint chairman Masayoshi Son said in Tokyo, according to analyst Walt Piecyk of BTIG Research.
Son promised that Sprint would spend $5 billion to $6 billion a year on its network, Piecyk wrote. Current spending is on pace for $4 billion or less this year, and that is an increase from $3 billion previously.
The decision to walk away from T-Mobile leaves Sprint as the smallest national carrier in a highly competitive market in which growth depends heavily on stealing rivals’ customers.
Read more: Kansas City Star