The Federal Communications Commission has suspended the review of the proposed merger between Sprint Corp (S) and T-Mobile US (TMUS), which lasted for several months, to review what she called "new information." Thursday night, with the aim of raising new concerns for the $ 26.5 billion merger.
The FCC said it needed more time to study a T-Mobile case earlier this week, updating the group's wireless broadband home service plans, and gathering public feedback. . The Commission generally completes merger review within 180 days and will resume counting on April 4th. The time limit for approving or rejecting the planned consolidation of the third and fourth largest carriers in the country is less than 60 days.
"When the applicants submitted substantial new submissions in support of their transactions after their initial requests, the Commission generally requested the public to make additional comments and suspended the 180-day informal deadline to permit a review. by staff and a third party, "said a statement. "This ensures that the public's interest in a timely review is balanced with the public's interest for a thorough and thorough analysis and the need for third parties to comment on the important information presented by the applicants."
Sprint shares fell 1.4% Friday at midday to change hands at $ 6.21, while T-Mobile shares were down 0.8% to $ 70.75, bringing their gain since the beginning of the year to about 11%.
T-Mobile's CEO, John Legere, wrote in a blog post last Thursday that Sprint's merger will allow the combined group to offer "a real alternative" to "fast, reliable broadband at home."
"All the big players – Charter and Comcast, as well as AT & T and Verizon – seem to play well with each other and never get lost in everyone's field," he said. "It works in their interest, but it hurts consumers – and it's not good!"
"The new T-Mobile will break this holiday of love using huge capacity gains and the dramatic increase in speed to achieve something that was not possible before," added Legere.
Legere, along with Sprint Executive Chairman Marcelo Claure, will testify before an anti-trust committee of the Democrat-controlled House on March 12. The Department of Justice, along with the FCC, will also have to approve the merger.