FCC and the GM seem divided on T-Mobile-Sprint

A merger between T-Mobile and Sprint, the third and fourth largest mobile phone companies in the country, has entered an uncertain legal territory this week, after the two federal agencies that reviewed the $ 26 billion deal dollars seemed divided in their reflection on the transaction.

The chairman of the Federal Communications Commission, Ajit Pai, announced on Monday that the two companies' plans have a positive impact on consumers by speeding up the nationwide deployment of a new mobile broadband service. Ultra fast. Pai has also received support from the other two FCC Republicans, placing the merger to get final approval from the FCC in the coming weeks.

However, the other agency examining the agreement – the Justice Department – still seems to have reservations about the combination of T-Mobile and Sprint companies, according to a person familiar with the Justice Department's investigation into merger project.

Antitrust officials, led by Makan Delrahim, remain skeptical about reducing the number of major wireless service providers from four to three, which will help consumers, who now benefit from pressure from their competitors to improve their prices and service offerings. said the person. The source asked not to be identified because the procedure is private.

A spokesman for the Justice Department declined to comment on the investigation. But Jeremy Edwards, a spokesman for the agency, noted that the DOJ "has a statutory mandate different from that of the FCC."

Even if the FCC approves the merger, the Department of Justice could still try to block the transaction in court because it would threaten competition. Sprint and T-Mobile declined to comment.

In his comments, Pai pointed out that the agreement would benefit consumers. "Two of the FCC's top priorities are bridging the digital divide in rural America and strengthening US leadership in 5G, the next generation of wireless connectivity," he said in a statement. "The commitments made today by T-Mobile and Sprint would go a long way towards advancing each of these critical goals."

[T-Mobile executives seeking merger approval booked more than 52 nights at Trump’s D.C. hotel]

Federal regulators have begun to consider the merger between T-Mobile, operated by the German group Deutsche Telekom, and Sprint, led by the Japanese conglomerate SoftBank, after the companies announced their plans in April 2018. For years, the wireless giants had flirted with such but political hurdles – including Washington's threats to block such an agreement – forced them to systematically abandon their plans.

This time, the executives of Sprint and T-Mobile believe that a merger would be the only way to challenge the massive corporate footprints of their biggest rivals, AT & T and Verizon, at the moment these Wireless giants are preparing to deploy the next generation of solutions. mobile service. Critics, including advocates of the public interest and even some of the rivals in the telecommunications sector, have criticized the agreement, saying it would further consolidate an industry that lacks choice and would result in lower prices. high for consumers.

Congressional Democrats and presidential candidates in the 2020 presidential election, such as Sens. Cory Booker (NJ), Amy Klobuchar (Minnesota) and Elizabeth Warren (Mass.) Joined the opposition in a letter previously sent to regulators. this year.

In an effort to improve critics, Sprint and T-Mobile announced Monday a series of concessions. They include a commitment to developing 5G wireless telephony in 97% of the country in three years, including much of rural America, while offering "identical or better price packages, at the same or better price" for next three years. They also committed to divesting Sprint's prepaid telephony business, Boost Mobile, to a third party after approval of the transaction.

"The new T-Mobile will be a staggering rival with the resources to face established monsters to boost competition and innovation for the benefit of everyone, anywhere in the world," said John Legere, T's CEO. -Mobile, in a blog post.