Sprint and T-Mobile merger approved by DOJ
The merger looks to be moving forward after much deliberation.
At long last, it looks like the Justice Department has approved the merger between Sprint and T-Mobile.
The merger comes following the two companies' agreement to form a new wireless carrier by selling some assets to Dish Network, according to antitrust laws. As part of the agreement, Dish will be required to build its own 5G network for phone customers. T-Mobile will sell off Sprint's prepaid brands to Dish and will then allow access to the carrier's network for the next seven years.
“The remedies set up Dish as a disruptive force in wireless," said Makan Delrahim, the Justice Department’s antitrust chief. Of course, not everyone is totally fine with tis situation. A group of state attorney generals have filed an antitrust lawsuit against the merger, looking to keep the over $26 million union from happening.
“Why scramble so much to create a fourth competitor when you already have one?” said Samuel Weinstein, an assistant law professor at the Cardozo School of Law at Yeshiva University.
The merging of both companies would essentially bring forth a wireless company that contains 90 millions customers, which would put it more in line with Verizon and AT&T's nearly 100 million wireless users apiece. It's a deal FCC chairman Ajit Pai has approved, and while there have been several decriers of the union, it looks like it's going to go ahead and go through, despite what its detractors are asking.
As part of the agreement, T-Mobile has agreed that it will not raise prices for three years and will also ensure 97% of the United States has 5G service in the same amount of time. We'll have to see what will end up becoming of the union, as well as how current subscribers' accounts will either transform or change with the upcoming merger's completion. Be sure to keep it locked on Shacknews for additional updates.
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