GSMArena.com GSMArena.com

Tip us

2.0m
150k
RSS

EV

Merch

Log in

Login

I forgot my password
Sign up
  • Home
  • News
  • Reviews
  • Videos
  • Featured
  • Phone Finder
  • Deals
  • MerchNew
  • Coverage
  • Contact
ADVERTISEMENT

Ex-Sprint dealers sue T-Mobile following Sprint store closures

  • Post your comment
  • Comments (7)

Enrique 23 February 2022

Sprint T-Mobile Rumors

A new lawsuit has been filed against T-Mobile this week by a group of wireless dealers. Fierce Wireless has seen copies of the suits. Absolute Wireless (South Carolina), Maycom (Florida), Solutions Center (Connecticut), and Wireless Express (Tennessee) all allege that T-Mobile’s merger caused these dealers to shut down as the merger resulted in either Sprint stores converting to T-Mobile stores, or outright closed.

T-Mobile reportedly lays off “hundreds” of Sprint employees with severance packages

According to Absolute Wireless and Solutions Center, T-Mobile only wanted to keep Sprint’s customers and its network, but generally didn’t want to keep Sprint’s dealers. As per Absolute Wireless’ lawsuit, T-Mobile “forced Absolute Wireless and other dealers out of their existing Sprint contracts, which had years remaining on their terms and which were more favorable than T-Mobile’s contracts,”.

According to Solution Center’s lawsuit, the company’s owner Mark Hudson was a Nextel dealer who ended up opening Solution Center after the Sprint/Nextel merger. It eventually grew to 28 stores across four states with over 200 employees. The merger has apparently resulted in more than $25 million in damages to Solution Center.

Maycom has been in business for 24 years and was one of Sprint’s top dealers. “In a matter of months, T-Mobile unlawfully devastated Macyom’s business,” says the complaint. “When the dust settled, of the 63 stores that Maycom once owned, only 28 remained to be sold at a T-Mobile created depressed value, 4 were given a limited 1-year lease renewal to operate and 31 stores were shuttered by T-Mobile.”

At the start of the merger, there were more than 9,000 Sprint and T-Mobile stores, this according to Jeff Moore of Wave7 Research. The number of stores is now less than 7,000, says Moore. Meanwhile, Metro stores have also dropped from over 9,000 to well under 8,000.

It is likely that the contracts made with the dealers were with Sprint, so once the T-Mobile merger took place and Sprint’s name was out the window, the contracts may have been thrown out as well.

Sprint CEO, Marcelo Claure and T-Mobile CEO, John Legere during the carriers' announcmenet to merge in April 2018. Sprint CEO, Marcelo Claure and T-Mobile CEO, John Legere during the carriers' announcmenet to merge in April 2018.

It’s unfortunate that a merger caused stores to close and employees to lose jobs, however, this outcome was inevitable. Even the DoJ warned during hearings and deliberations that hundreds of retail stores would close, except the number was in the thousands according to Moore. It is impossible for a merger of this scale to ever be a win-win-win for all parties involved. As Americans say: “It’s just business”.

Source

Related articles
  • T-Mobile reportedly lays off hundreds of Sprint employees with severance packages T-Mobile reportedly lays off hundreds of Sprint employees with severance packages
  • Justice department reaches settlement to approve T-Mobile and Sprint merger with conditions Justice department reaches settlement to approve T-Mobile and Sprint merger with conditions
  • Dish calls out T-Mobile for wanting to shut down Sprint’s 3G network too soon Dish calls out T-Mobile for wanting to shut down Sprint’s 3G network too soon
  • T-Mobile announces $3 billion investment in mid-band 5G spectrum T-Mobile announces $3 billion investment in mid-band 5G spectrum

Reader comments

O
  • OmNom
  • Q5T
  • 02 Jul 2022

Right, they don’t pay as well either. Less TPR is better for everyone

  • Reply
A
  • Ale
  • IbE
  • 25 Feb 2022

I agree , no need stores

  • Reply
A
  • Ale
  • IbE
  • 25 Feb 2022

Naw , we don't need stores everything is done online nowadays

  • Reply
  • Read all comments
  • Post your comment
Total reader comments: 7

ADVERTISEMENT

Phone finder

  • Samsung
  • Apple
  • Huawei
  • Nokia
  • Sony
  • LG
  • HTC
  • Motorola
  • Lenovo
  • Xiaomi
  • Google
  • Honor
  • Oppo
  • Realme
  • OnePlus
  • Nothing
  • vivo
  • Meizu
  • Asus
  • Alcatel
  • ZTE
  • Microsoft
  • Umidigi
  • Coolpad
  • Oscal
  • Sharp
  • Micromax
  • Infinix
  • Ulefone
  • Tecno
  • Doogee
  • Blackview
  • Cubot
  • Oukitel
  • Itel
  • TCL

All brands Rumor mill

ADVERTISEMENT

Top 10 by daily interest

  Device Daily hits  
1.Samsung Galaxy S25 Edge37,810
2.Samsung Galaxy A5627,471
3.Infinix GT 30 Pro 5G26,321
4.Samsung Galaxy S25 Ultra22,458
5.Xiaomi Redmi Turbo 4 Pro21,213
6.Sony Xperia 1 VII 5G20,845
7.Xiaomi Poco X7 Pro18,387
8.Apple iPhone 16 Pro Max18,007
9.Tecno Camon 40 Pro 5G16,027
10.OnePlus 13T 5G15,710

ELECTRIC VEHICLES

Porsche postpones electric Boxster and Cayman launch once again Porsche postpones electric Boxster and Cayman launch once again Volvo bets big on Google smarts for future electric carsTesla's Robotaxi service is set for a cautious kick-off in Austin before wider rollout
ADVERTISEMENT

Home News Reviews Compare Coverage Glossary FAQ RSS Youtube Instagram TikTok Facebook Twitter

© 2000-2025 GSMArena.com Mobile version Android app Tools Contact us Merch store Privacy Terms of use Change Ad Consent Do not sell my data