T-Mobile-Sprint Merger Approved by FCC, Deal Faces Scrutiny by State Attorneys General

By Paul Riegler on 5 November 2019
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IMG_2430The Federal Communications Commission approved on Tuesday the merger between T-Mobile US and its rival Sprint.  The two are the nation’s number three and number four mobile operators, respectively.

The 3-2 vote was along party lines: Democratic members Jessica Rosenworcel and Geoffrey Starks opposed the deal while the agency’s three Republican members including FCC Chairman Ajit Pai voted in favor of the merger.

The merger still faces additional scrutiny as a group of state attorneys general filed a lawsuit to block the deal, saying it would result in less competition and higher prices for mobile phone service.

In July, the Department of Justice approved the merger after the two mobile operators agreed to create a new wireless provider by selling certain assets to satellite-TV company Dish.

If T-Mobile and Sprint do overcome final obstacle of the state attorneys general suit, it would leave more than 95% of mobile users in the United States in the hands of three companies, namely Verizon Wireless, AT&T Mobility, and the merged T-Mobile entity. The new T-Mobile would be the second largest mobile operator in the United States, after Verizon Wireless.

At the time plans for the merger were announced in early 2018, the two The two companies said in a statement that the deal would “provide U.S. consumers and businesses with lower prices, better quality, unmatched value, and greater competition.”

(Photo: Accura Media Group)

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