Legere argued that T-Mobile and Sprint need to combine their networks in order to develop 5G and keep the U.S. at head of the 5G race. “5G has to be nationwide,” Legere said. The hype surrounding 5G is increasingly hailed as the future of wireless and broadband connectivity.
"The United States will not get a second chance to win the global 5G race," Meredith Attwell Baker, president and CEO of the wireless industry group CTIA, warned in April, when the group released a report concluding that the US trails China and South Korea in preparing for 5G (fifth generation) networks. If that doesn’t change, the report warns, the US economy will suffer.
President Trump has made it a priority to rebuild America’s infrastructure. He proposes to devote $50 billion, which is 25 percent of new federal money, to improving infrastructure in rural America. This unprecedented commitment will stimulate at least $1.5 trillion in infrastructure investments over the next decade.
The U.S. commerce secretary said on Tuesday that building a next-generation 5G mobile network was a priority for President Donald Trump’s administration, boosting the argument behind the proposed merger of wireless carriers Sprint Corp (S.N) and T-Mobile US Inc (TMUS.O). “I think the pitch that Sprint and T-Mobile are making is an interesting one, that their merger would propel Verizon and AT&T into more active pursuit of 5G,” Wilbur Ross told CNBC.
According to the two companies’ big announcement video, the combined “New T-Mobile” and its 5G network will leverage both T-Mobile’s 5G plans to use the 600MHz band of spectrum and Sprint’s plans for the 2.5GHz band to build out a nationwide network that will be “the highest capacity mobile network in US history.”
April 29, 2018 - Sprint and T-Mobile announced today that they are merging into one $146 billion company, setting the company up to compete against AT&T and Verizon in 5G and the internet of things. If the deal passes regulatory approval, the U.S. will have three large carriers instead of four.
Qualcomm, the Trump administration argues, is needed to boost America's lead in 5G research and development. Should the San Diego chipmaker fall behind, Chinese manufacturers could fill the void in U.S. and global markets. That would be a blow for U.S. innovation, as the mass market could be beholden to foreign hardware. Worse, Beijing could have an advantage in discovering vulnerabilities in the technology that it could turn into so-called backdoors used for spying.
President Donald Trump blocked Singapore chipmaker Broadcom from pursuing a hostile takeover of U.S. rival Qualcomm, ruling the proposed combination would imperil national security. The decision, announced late Monday, abruptly ends Broadcom's four-month, $117 billion bid to buy Qualcomm -- a deal that would have been the largest ever completed in the technology industry.
"It is not just China, it is not just chips. It is broad technology. It is U.S. military power and economic power going forward and he's got a very consistent point of view," said Ron Napier, head of Napier Investment Advisors. "Trump has been saying all year long since he was inaugurated that security is very important to him, technology is very important to him, trade is very important to him and getting jobs back to the United States is very important to him. He's making this all into one fabric," he added.