PUNE: Tech Mahindra is likely to receive more business from a planned merger of US telecom giants Sprint and T-Mobile, analysts said, citing the Indian IT services provider’s expertise in the communications vertical, both in legacy as well as emerging 5G technology.

“Sprint + T-Mobile merger is a growth opportunity. Sprint mobile core systems will move to T-Mobile, which is managed by TechM,” Amit Chandra and Apoorva Purohit of HDFC Securities said in a note following a meeting with the Tech Mahindra management recently.

Sandip Agarwal of Edelweiss Securities wrote in a note: “Management highlighted that while legacy spends in the enterprise business are waning, enterprises are pinning hopes on digital as the growth driver, thereby increasing their overall allocation to technology.”

The IT services firm earns 41% of its revenue from the communications vertical, a business it dominates by helping telecom firms manage their legacy tech and equipping them with solutions to battle video streaming players such as Netflix. Tech Mahindra has tripled deals in emerging tech like 5G, analysts said.


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