T-Mobile and Sprint’s merger has been on and off for quite some years. According to some sources, it is back in news as The Department of Justice prepares to pass the deal. The approval from The Department of Justice would be a big step for the two companies while they want to stand against AT&T and Verizon. In the previous week, state attorneys from California and New York, District of Columbia and seven more states filed a suit to stop the merger. They said that the merger would reduce the competition and raise the returns to the network operators.
The Chairman of Federal Communications Commission, Ajit Pai, suggested that FCC will approve the merger after t-Mobile and Sprint will change some provisions of the merger. The companies revised some provisions like within 3 years of the deal they would improve the download speed to 100 MB/second, available to 66% Americans, and mobiles at better prices. Also, the merged company will provide broadband products at home. The companies also promised to have a 5G network within 6 years.
Due to the domination of AT&T and Verizon in the markets, Sprint and T-Mobile have lagged behind where the former two have already built a 5G network for their customers, due to lack of cost and resources, the latter have not been able to do it yet. Together, the companies would be able to join resources and reduce their costs, thus providing better services for their customers.
Although The Department of Justice is ready to approve the merger, but the lawsuit filed by the states has blocked the path. Even after T-Mobile’s promises including to not raise its prices for 3 years after the deal, the states are not convinced by their terms. And because the states have many customers of Sprint and T-Mobile, the lawsuit is a big challenge for the companies.