EXCLUSIVE: T-Mobile and Sprint Rebuttal Reports Are Compromised, Affirming That MJ Did Not Indicate That Fusion Was In Danger

Representatives of T-Mobile US Inc. and Sprint Corp. said they have not been warned by the US Department of Justice that their $ 26 billion merger plan would likely be dismissed by federal regulators without major improvements, and that they continue to work with government authorities. to close the deal, the FOX business network has learned.

Recent reports have suggested that antitrust staff at the Justice Department alerted company officials to the fact that it was likely that the department would reject the agreement on the basis that it would eliminate competition. in the wireless market by reducing the number of large carriers. DOJ staff reportedly made the announcement at a private meeting earlier this month with representatives of T-Mobile and Sprint.

Regulators should indicate in the coming weeks whether they will approve the merger agreement. The two parties met in early April to discuss the merger and what the government is reviewing. However, according to those involved in the T-Mobile and Sprint representative process, DOJ staff did not reach a conclusion and did not recommend major changes to the merged company so the transaction could have place.

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Telecom executives and the companies themselves, however, recognize that regulatory approval is far from over. As stated by FOX Business, DOJ staff are concerned about the risk of anti-competitive behavior, given the reduction in the number of wireless service providers. DOJ's antitrust chief, Makan Delrahim, is seen as a pro-business advocate, but he will also need to look closely at the implications of the antitrust deal.

The merger of the telecom giants is one of the most monitored deals on Wall Street. In Washington, company officials have tried and failed in the past to get this agreement accepted through the Federal Communications Commission's policy-making apparatus and the MJ's antitrust division, the Obama administration.

However, company officials believe they are more likely to get approval from the DOJ and FCC from the Trump-friendly government. Over the past year, company officials have lobbied the government to argue that the combination of T-Mobile and Sprint would create a much stronger company to better compete with foreign companies through the development of technology. 5G ultra-fast wireless. The development of 5G is expected to add 3 million jobs and 500 billion dollars to the US economy.

Officials also argued that the reduction of a major mobile operator would not impact consumer tariffs, as the merger of the new company will still face stiff competition from Verizon and AT & T.

Teleprinter	security	Latest	Change	% Chg
T	AT & T INC.	32.25	0.23	+ 0.72%
TMUS	T-MOBILE US INC	74.10	0.31	+ 0.42%
S	SPRINT CORP.	6.01	0.13	+ 2.21%
VZ	VERIZON COMMUNICATIONS INC.	58.79	0.08	+ 0.14%

A T-Mobile spokesman declined to comment on the case, but referred FOX Business to a tweet from John Legere, T-Mobile's CEO, who refuted a report released Tuesday on the alleged prospects of T-Mobile. a downward agreement.

"The premise of this story … is simply wrong. Out of respect for the process, we have no comment. It's still our policy since we announced our merger last year, "Legere said on Twitter.

A spokesman for the antitrust division of DOJ declined to comment.

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A representative of T-Mobile in the regulatory discussions told FOX Business that DOJ staff had acknowledged that it continued to review companies' arguments about the efficiencies that the merger would create. Officials say that these efficiencies would allow the new team to lower prices and not raise antitrust issues.

"The staff never said anything about the approval, one way or another," said the person.

Robert McDowell, a former FCC commissioner who is currently T-Mobile's Regulatory Legal Advisor, told FOX Business: "As announced two weeks ago, the dialogue between the government and the parties is healthy. There is no evidence that final decisions have been made. This process could last several more weeks. "