T-Mobile and Sprint announced Sunday plans to combine with each other in a $26.5 billion merger deal.
The merged company will keep the name T-Mobile.
The move would leave three major cellphone companies, along with telecommunications giants AT&T and Verizon.
Critics worry leaving the American wireless industry with three competitors could lead to higher prices for consumers, but the companies argue differently.
“This combination will create a fierce competitor with the network scale to deliver more for consumers and businesses in the form of lower prices, more innovation, and a second-to-none network experience – and do it all so much faster than either company could on its own,” said T-Mobile CEO John Legere in the statement.
Sprint made a bid to acquire T-Mobile more than three years ago, but scrapped the deal because of regulatory opposition from the Obama administration.
The companies are banking the Trump administration views the merger favorably.
