January 13, 2023
T-Mobile U.S. is reportedly considering acquiring mobile virtual network operator Mint Mobile, a low-cost provider that uses T-Mobile’s network and offers monthly contracts starting at $15.
According to Bloomberg, officials from both companies discussed a possible acquisition of Mint Mobile, which is partially owned by actor Ryan Reynolds. Though no firm agreement has been reached, talks between the two could end in failure.
Mint operates on T-Mobile’s network as a wholesale customer through an MVNO arrangement. This may make it easier to reach an agreement because T-Mobile will be able to bring it in-house and increase its profitability.
Mint Mobile and T-Mobile have had a good working relationship for many years: as a mobile virtual network operator (MVNO), Mint Mobile does not build, operate, or maintain cell phone towers. Instead, it leases T-Mobile tower connections, so Mint Mobile customers use the T-Mobile network whenever they make a phone call or browse the web on their smartphones.
It’s not the first-time rumors of a Mint acquisition have surfaced. The New York Post reported in 2021 that Reynolds was set to profit from his stake in Mint Mobile, which was estimated to be worth 20% to 25%.
The sources for this piece include an article in Bloomberg.
