Final answer:
The merger between T-Mobile and Sprint is an example of horizontal integration, where two companies at the same level in an industry combine to grow larger and gain market efficiencies.
Step-by-step explanation:
When T-Mobile merged with Sprint, this event was an example of a horizontal integration. Horizontal integration occurs when two companies operating at the same level within an industry combine. This type of merger is often pursued to achieve benefits such as economies of scale, increased market share, reduced competition, and expanded reach into new markets or demographics. It contrasts with vertical integration, where companies at different production stages within the same industry merge, and conglomerate integration, where completely unrelated businesses combine.
In the case of T-Mobile and Sprint, both companies were key players in the mobile service provider industry. By merging, T-Mobile aimed to capitalize on the combined customer base and network infrastructure to be more competitive, particularly against other major providers like AT&T and Verizon.
Corporate mergers can sometimes raise concerns under antitrust laws, which seek to ensure active competition in the market is maintained. However, this deal successfully passed regulatory scrutiny and was completed, marking a significant consolidation in the telecommunications industry.