GM gets closer to T-Mobile-Sprint's approval

New York Times says US Department of Justice is in the process of approving Sprint's merger with $ 26 billion T-Mobile merger if both companies agree to sell several assets to create a new wireless service provider. According to the newspaper, three anonymous sources close to the DOJ said that the agency could approve the deal as early as next week, provided that a new national telephone operator can be created to ensure sufficient competition on the wireless market.

T-Mobile and Sprint have already made an agreement with the Federal Communications Commission to sell the prepaid brand of Sprint, Boost Mobile, in exchange for the blessing of the agency. The FCC and the GM must each sign the agreement. FCC President Ajit Pai has already indicated that he would support the merger if the companies agreed to sell Boost and if they made other commitments, such as compliance with the development requirements for 5G wireless service. In addition to the Boost sale, the Department of Justice is also asking T-Mobile and Sprint to divest the wireless spectrum, according to the Times.

Reports that the GM wanted companies to sell their assets to create a new carrier were first released last month. But the Times report suggests that an agreement is imminent.

Such an agreement could weaken the case for further merger by the states. A group of 10 state attorneys general, led by Attorney General of New York State, Letitia James, and California Attorney General Xavier Becerra, filed their complaint earlier this week, claiming that the amalgamated company "would deprive consumers of the benefits of competition and drive up prices for mobile telephony services".

The trial to block the merger is scheduled for a preliminary hearing next week in federal court in New York, according to Reuters.

T-Mobile declined to comment on the report. Sprint, the DOJ and the New York Attorney General's office were not immediately available for comment.