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While T-Mobile and Sprint are awaiting the decisions of the Department of Justice and the Federal Communication Commission regarding their merger, a new report has been released which states that carriers could make concessions to help increase the odds of a merger. approval of the agreement.
T-Mobile and Sprint are considering some franchise options, including a separation and sale of their prepaid business. T-Mo and Sprint are also considering selling some of their spectrum licenses or creating a fourth US operator through a network leasing agreement. Bloomberg sources say that these options are much less attractive for T-Mobile and Sprint.
Before being able to merge, the contract between T-Mobile and Sprint must be approved by the GM and the FCC. Some people fear that the combined company may have too much of the prepaid market because a combination of Metro by T-Mobile, Boost Mobile and Virgin Mobile would give the new T-Mobile a 42% share of the prepaid market. Critics of the deal said this could lead to less competition, which could result in fewer choices and higher prices for consumers.
A recent report suggested that DOJ staff members told T-Mobile and Sprint that it was unlikely that their merger would be approved because it is currently structured. Although this rumor is not confirmed, this new report according to which T-Mo and Sprint plan to make concessions suggests that they fear that their agreement will not receive the go-ahead.
T-Mobile and Sprint have recently extended the deadline for their merger until July 29, 2019. The FCC is currently at the 161st day of the 180-day time frame for the review of the transaction.
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