Verizon has been trying to sell itself as a customer-first company since it acquired T-Mobile US in 2016.
The deal to acquire T-Mo came after a turbulent year in which the telecom operator struggled to find a way to keep customers on its network.
But the deal to buy T-Mob, the company that has been using its network as a carrier for years, has brought Verizon a new set of problems.
As part of the deal, Verizon will get out of its business of managing and servicing T-mobile’s network, and the carrier will be able to offer a faster version of its own voice service.
T-mob has been slow to respond to Verizon’s request to merge with the carrier, and it has been unable to find customers to use the faster service.
Verizon is also expected to gain new revenue streams by providing the phone service to other carriers, such as AT&T and T-Verizon.
“Verizon’s decision to take this unprecedented step indicates that the company is looking to be more aggressive in the areas of mobile and data services,” wrote Chris Hill, an analyst at Bernstein Research.
In a blog post, T-mo chief executive Tim Bostrom said that he would remain in the role for “as long as necessary.”
“Verizon has made significant progress in expanding our services to consumers in the past few years,” Bostro wrote.
“We are confident that this agreement will result in a better customer experience and a better business.”
Verizon also said that it would spend $1.2 billion to upgrade its network in the next few years.
Verizon and Tmo are also expected pay $1 billion for new equipment, but Verizon said that the purchase price is far lower than it previously paid.