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A group of attorneys general from 10 states on Tuesday launched a federal lawsuit to block a proposed merger between mobile operators T-Mobile and Sprint, a $ 26 billion deal that has not yet received Ministry of Justice approval.
The trial, led by Letitia James of New York, and Xavier Becerra of California, says the competition will suffer and consumer prices will rise if the two companies merge. Colorado, Connecticut, District of Columbia, Maryland, Michigan, Mississippi, Virginia and Wisconsin joined the complaint, which was filed in the Federal District Court in Manhattan.
"The merger between T-Mobile and Sprint would cause irreparable harm to mobile subscribers across the country by cutting access to affordable and reliable wireless services to millions of Americans, but would particularly affect minority and low-income communities here in New York and in urban areas. across the country, "said Ms. James in a statement.
She called this agreement "exactly the type of mega-merger that kills the consumer and the loss of jobs" and that our antitrust laws were designed to prevent. "
According to the complaint, the merger could cost Sprint and T-Mobile subscribers at least $ 4.5 billion a year.
Ajit Pai, President of the Federal Communications Commission, Last month, he supported the deal, which should reshape the wireless industry in the United States.
The companies have expressed "significant commitments" to expand broadband service in poor rural areas and to build an extensive network using next-generation 5G wireless technology, Pai said.
T-Mobile and Sprint, the third and fourth largest wireless service providers in the country, did not immediately respond to requests for comment. The proposed merger would position companies better to compete with AT & T and Verizon rivals.
In recent months, Democratic lawmakers in Washington have criticized the proposed deal and the lobbying campaign carried out by both companies. John Legere, Chief Executive Officer of T-Mobile, has made numerous visits to the FCC. As part of a charismatic offensive, Sprint Executive Chairman Marcelo Claure organized a fundraiser for a Tennessee legislator who supported projects in support of the telecommunications sector.
Democrats also noted that corporate executives have been to Trump hotels several times since the announcement of the merger plan announced last year. In January, for example, Mr. Legere stayed at the Trump International Hotel in Washington for two nights, at $ 2,246.
Under the Obama administration, regulators have insisted that the presence of four major mobile operators across the country helped keep prices low for consumers and boost innovation. Their successors in the Trump administration have not taken a similar position.
President Trump has made the advancement of 5G wireless technology to be used by the next generation of mobile broadband networks a national priority. He argued that China's dominant position in this area posed a threat to national security, as technology would be a key element in the development of robotics, driverless vehicles and other emerging industries.
Trump's rhetoric on the issue is useful for T-Mobile and Sprint, who described the merger as a way to bring 5G technology to rural areas that cable services have neglected. Companies have argued that by joining forces, they could also market 5G faster than they would otherwise.
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