T-Mobile and Sprint’s wireless merger may have just been doomed by US regulators

The colossal and changing merger of the industry among US mobile phone providers UU T-Mobile and Sprint meet with significant resistance from the regulators. According to The Wall Street Journal the Department of Justice warned both companies that it is unlikely that their merger will be approved as currently proposed. Antitrust concerns are said to be at the top of the DOJ's problems with the agreement: Regulators are concerned that the agreement could harm wireless competition despite the insistence of the two operators that it would be a boost to the creation of jobs and the evolution of the network.

In its own corroboration report, Reuters says that the DoJ has told both parties that it is opposed to the merger under its current structure, but that it is not clear whether the regulators are trying to completely eliminate the merger or are seeking changes. . T-Mobile Executive Director John Legere is currently in Washington, DC and is scheduled to meet with FCC officials this week. Both he and Sprint's CEO, Marcelo Claure, have testified before Congress in hopes of obtaining the $ 26 billion merger to the finish line.

Legere, who would lead the combined company, led Twitter to refute the story of Journal shortly after its publication, claiming that its premise was "simply false."

The agreement has faced a strong rejection of Democratic lawmakers, who recently urged against him in a letter addressed to FCC chairman Ajit Pai and the staff of the Department of Justice's antitrust division, the same people who met with T-Mobile and Sprint earlier this year. month to warn that the agreement is far from safe. According to the Journal "some antitrust state officials have expressed concerns similar to those of the Department of Justice" and will pose a legal challenge to the agreement if the Justice Department does not lead the charge.

T-Mobile and Sprint have spent months pushing for the merger and insisting that turning EE is critical. UU On a leader in the 5G era, and introduce the biggest rivals, Verizon Wireless and AT & T, with more formidable competition. But the Justice Department seems concerned about the possibility of reducing the US mobile phone market from four major companies to only three.

The lack of approval from regulators would effectively condemn the acquisition; Before announcing this last proposal, T-Mobile and Sprint abandoned previous merger talks due to an unfavorable regulatory perspective. Both seemed to think they would have better odds under Trump's administration, but it seems that the Justice Department will seek changes in the structure of the merger, and both companies may have to make some concessions, if it still will happen.

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