SoftBank is also planning to sell its stake in Sprint Corp. (S) to T-Mobile US Inc. (TMUS). This sale, along with the mobile unit IPO, will help SoftBank reduce its huge debt load and in turn improve its credit rating. SoftBank has plans to invest in major global start-ups through its SoftBank Vision Fund and the company is seeking new sources of finance for the same.
T-Mobile, Sprint to create the third great pillar of US telecom
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The mobile industry in Japan has been profitable but it continues to face issues such as tough pricing, lack of capital and low demand which hinder growth. The situation is likely to get tougher for mobile companies as prices get lower and the struggle to gain market share increases with the entry of new players.