Roger Fingas
Only hours after FCC chairman Ajit Pai expressed his support for Sprint and T-Mobile's proposed merger, the U.S. Justice Department was reported to be against the deal over antitrust concerns.
The carriers have not worked hard enough to dispel Justice Department fears, a Bloomberg source said on Monday. Any merger must still clear the rest of the FCC and the DOJ's antitrust division.
Sprint and T-Mobile first agreed to a $26.5 billion merger in April 2018, looking to challenge the two biggest U.S. carriers, AT&T and Verizon. Some people immediately raised flags about the deal, noting that it would reduce national telecoms competition and potentially lead to higher data costs.
To appease groups like the FCC, Sprint and T-Mobile have already put forward several concessions. These include selling off Sprint's Boost Mobile brand, committing to a three-year 5G expansion and avoiding price hikes while that network is under construction.
The combined company would still control Metro and Virgin Mobile, however, and leave Americans with just three national postpaid carriers — potentially fewer in regions where coverage is weak.
Under the Trump administration the Justice Department has fought other megamergers, most notably AT&T and Time Warner. An appeals court has so far upheld that deal, valued at $85.4 billion.
Andrew Orr
Amber Neely
William Gallagher
Christine McKee
AppleInsider Staff
22 Comments
Adjit is a piece of crap. He has investments in the carriers so of course he wants it to happen. He wants to make money off of it too. Hopefully the DOJ does block it.
Glad to see SOMEONE is trying to protect consumer interests, craPai sure as hell isn't.
Don't blame judge for handing over ruling. Mr. Ajit Pai is recommending merger based on two companies committing number of things. Both companies want to merge and agreed to 3 years no price hike and accelerate 5G including rural area. Problem is going forward in few years trio can raise prices and consumers will possibly suffer.
I love T-Mo and have had nothing but horrible experiences with Sprint. Hope the merger doesn't go through. And John, see what that money pissed away at Trump hotel bought you? a big nothing, you numb nut.
What people aren’t seeing is that Sprint is on its last leg. If the merger doesn’t go through, we’re more likely looking at 2 and a half national carriers instead of 3. Sprint will die wheezing without this T-Mo bailout/buyout. You want to talk less competition and higher prices? T-Mo is the only carrier keeping that thought alive. SoftBank sure won’t for much longer.