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The merger of wireless phone companies No. 3 and No. 4, T-Mobile and Sprint, could be threatened with failure.
According to the Wall Street Journal, citing unnamed sources, Justice Department lawyers told companies that it was unlikely that their $ 26 billion merger would be approved.
Verizon is the leading wireless carrier with a 34.4% market share, followed closely by AT & T with 33%, 17.9% for T-Mobile and 13.5% for Sprint, according to a recent study by Georgetown University.
The word of the end of a merger belongs to the agency's executives, not the staff, so Sprint and T-Mobile could see their merged company materialize, but a staff recommendation to the company. Against this merger is not a positive sign.
As we are in an end-of-life market, it makes sense to look for value and security, and analysts at Oppenheimer could be interested in the sector that brings the two together. (Photo: Tony Webster / Wikimedia Commons)
T-Mobile and Sprint had already tried to merge, but the deal failed. T-Mobile has also sought to join forces with AT & T, but the Obama administration has blocked this one.
On Twitter, T-Mobile's CEO, John Legere, rejected the Wall Street Journal's report as speculation, calling the "… just wrong" principle, and said the company would have no comment .
In announcing the merger of the deal, T-Mobile and Sprint said the decision would boost business competitiveness and allow them to invest in the next generation of technology, the ultra-fast 5G service.
In a paper filed this week at the Federal Communications Commission, Sprint said that it was absolutely necessary that the merger be competitive.
"Sprint is in a very difficult situation that is getting worse." Sprint's network lacks the coverage and consistency demanded by its customers … Sprint loses customers, which then reduces its revenues and flows This further limits its ability to invest in its network and service of its debt – in simple terms, Sprint is not on a sustainable competitive path. "
We reached Sprint to comment, but we did not get an answer.
Follow Jefferson Graham on Twitter: @jeffersongraham
Read or share this story: https://www.usatoday.com/story/tech/talkingtech/2019/04/16/t-mobile-sprint-merger-may-not-clear-justice-department-wsj/3490887002/
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