T-Mobile US Inc (NASDAQ:TMUS) is preparing for a merger with Sprint Corp (NYSE:S) for several years. However, internal documents reveal it is also preparing for a subsequent merger with the capable company. Comcast Corporation (NASDAQ:CMCSA) is a potential target for takeover by T-Mobile.

Bets on the wireless market in the US

According to the confidential reports, the owner of T-Mobile – the Deutsche Telekom – has put a heavyweight on the wireless market in the US where the regulations are loose and enough scope to make handsome profits. The ARPU (average revenue per user) is highest in the US when compared to Europe.

According to the predictions of analysts, T-Mobile is already at the highest limits for organic growth and needs to focus on industry-wide consolidation to spur growth beyond 2018. The internal report also cautioned the company against aggressive pricing to retain the profits going forward. It is also urged to prevent price war in the markets of the US.

T-Mobile considered a merger with Sprint

T-Mobile has proposed a merger with Sprint in 2015. However, the regulators have blocked the possible merger. FCC chairman, Tom Wheeler, is skeptical about the consolidation in the wireless market. According to the document, the merger is unlikely under the rule of democrats. However, some positive movement is expected under today’s Republican administration. The document suggested T-Mobile should first consider a merger with Sprint and later with a cable company such as Comcast separately.

The impressive customer base of T-Mobile

T-Mobile has an impressive past. The company’s subscriber base has increased to 84 million in the most recent quarter this year when compared to 55 million in early 2015. The revenues of T-Mobile have surged significantly over 40%. Its market value is increased to $114 billion in 2019 from $50 billion in early 2015.

Prepares to play with cable companies

T-Mobile has seen a lot of positive improvements since the proposed merger with Sprint in 2015. The company is now prepared to offer live TV and wireless broadband and take on the cable companies. It has introduced 4G LTE services to its customers and now offering the faster 5G internet at blazing speeds.