Analysts at Wells Fargo have raised the probability that the proposed merger between T-Mobile and Sprint will be approved.
In a letter to investors, the analysts expressed growing confidence in the regulatory process:
“Our checks continue to indicate that S/TMUS regulatory review remains fairly drama-free thus far.
Contacts indicate that the Federal Communications Commission review continues to proceed as expected. While the U.S. Department of Justice is admittedly a walled garden, most contacts we spoke to have not heard chatter coming out of the agency which would suggest there exist insurmountable barriers in completing this marriage.”
Wells Fargo now places the chances of the deal succeeding at roughly 70 percent, a notable increase compared with estimates from other analysts earlier this year.
In August, analysts at MoffettNathanson LLC and Recon Analytics had put the odds at about 50-50, while Walter Piecyk of BTIG LLC estimated the probability at under 40 percent.
T-Mobile and Sprint maintain that, if the merger is approved, combining their assets will accelerate nationwide deployment of 5G networks.
With the United States and China competing to lead 5G deployment, some regulators may view the T-Mobile–Sprint merger more favorably if they conclude it would speed up the rollout of next-generation wireless infrastructure.
Several industry observers predict the merger could receive approval by the end of the first quarter of 2019.
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