DOJ antitrust staff will recommend blocking T-Mobile-Sprint merger
May 25 2019
Had the didactic deal been approved, it would reduce the number of USA wireless carriers to three from four, while Verizon and AT&T would be leading the pack with T-Mobile slightly behind. "The commitments made today by T-Mobile and Sprint would substantially advance each of these critical objectives". An FCC vote on the plan still has yet to be scheduled.
The deal stoked concerns of reduced competition in the wireless industry because the number of major players would fall from four to three.
Though Pai and Carr recommend the T-Mobile/Sprint merger, the deal still has to be approved by the US Department of Justice to ensure it doesn't violate antitrust laws.
T-Mobile and the Justice Department did not respond to requests for comment. They've also promised not to raise prices for three years. Bloomberg News reported earlier this week that Delrahim is leaning against the transaction, citing a person familiar with the matter.
Pai says that the merger's anti-competitive harms can be remedied with conditions, such as forcing Sprint to divest its reseller subsidiary, Boost, and requiring T-Mobile to give Boost wholesale access to its network. We should seize this opportunity, ' said Pai. "The FCC Chairman wouldn't stick his neck out if he wasn't confident that his antitrust counterpart wasn't onboard". It has slashed investment in many smaller European countries to concentrate primarily on its home market and T-Mobile, led by its iconic CEO, John Legere, pictured above.
Pai said Monday that the combination will help bring faster mobile broadband to rural Americans. Within six years, the network is to cover 99 percent of the nation and at least 90 percent of rural areas. Democratic lawmakers have also been skeptical of the companies' promises.
If regulators find that the company missed its commitments, the companies agreed to pay penalties ranging from $10 million to $250 million, according to the filing.