T-Mobile and Sprint started the day with very good news when FCC chairman Ajit Pai said he would urge the commission to approve its merger that transforms the industry. The shares of both companies went off shortly after. But just a few hours later, Bloomberg reports that the US Department of Justice. UU It is inclined towards blocking the merger because of antitrust issues. This is not the first time we've heard that the Justice Department is not convinced that a combination of T-Mobile and Sprint is a positive development for consumers.
Quoting a person familiar with the review of the ongoing merger of the DoJ, Bloomberg says that "the remedies proposed by the companies do not go far enough to solve the antitrust problems." T-Mobile and Sprint agreed on several "enforceable" Commitments and milestones in the 5G deployment in the US. UU In order to obtain the FCC's approval of the agreement; Boost Mobile will also be sold if the merger is successful. In a video, T-Mobile CEO John Legere insisted that the combined company would face heavy financial fines if it does not meet the 5G development goals. He also promised once again that consumers would not face higher mobile plan prices for at least three years.
But the Department of Justice's antitrust division is the crucial hurdle, and one bigger than the FCC in this case, that T-Mobile and Sprint must overcome if they want to overcome the $ 26.5 billion merger. Those same conditions that Pai found acceptable might not be enough to get a seal of approval from antitrust officials. The trading of Sprint shares was briefly stopped by volatility on Monday afternoon after the story of Bloomberg was published.
Both T-Mobile and Sprint say their union is essential for the United States to be a leader in 5G mobile networks and present a more formidable competitor to the larger rivals, Verizon Wireless and AT & T. Critics argue that reducing the number of major US mobile service providers. UU Four to three will result in higher prices and job losses, regardless of what T-Mobile and Sprint promise. When The Wall Street Journal originally reported that the Justice Department was turning against the merger, Legere and Sprint CEO Marcelo Claure rejected the story and claimed it was inaccurate. But now Bloomberg is corroborating that this is still far from being a certainty.