Sprint, T-Mobile urged to create new US carrier to win merger approval
Category: #headlines  By Nikita Chaurasia  Date: 2019-05-30
  • share
  • Twitter
  • Facebook
  • LinkedIn

Sprint, T-Mobile urged to create new US carrier to win merger approval

Reports suggest that the Department of Justice is asking Sprint and T-Mobile to establish the foundation for a completely new carrier to emerge, as a condition in order to grant approval for their merger. However, this requirement for Sprint and T-Mobile to spin off a full-fledged national competitor would outweigh the benefits as compared to the two companies merging.

Sources familiar with the matter mentioned that this merger would seem to go against one of the essential arguments that Sprint and T-Mobile have stated for their merger. Teaming up will lead to a much larger and more formidable contender against AT&T and Verizon Wireless, ultimately driving down prices for consumers.

Apparently, giving away enough network resources and spectrum to produce a new national carrier would certainly result in a weaker New T-Mobile than the two companies had originally expected. Sprint and T-Mobile have claimed that their merger would lead to a comprehensive and ambitious deployment of 5G technology around the United States over the next forthcoming years.

According to the sources, earlier in the month both companies were in agreement for enforceable deadlines on 5G expansion and in accordance, Ajit Pai, the FCC chairman agreed to vote in favour of the deal. Along with that, Sprint also said it will acquire a new owner for Boost Mobile if the agreement would be approved. But critics mentioned that Sprint and T-Mobile’s promises on covering 97% of the US with 5G within three years are hard to measure.

Seemingly, as per sources, those conditions that Sprint and T-Mobile fulfilled to gain the favour of FCC have not been enough to influence the antitrust chief of the Justice Department, Makan Delrahim. Although, discussions between DoJ and carriers have reportedly been fruitful, with both Sprint CEO Marcelo Claure and T-Mobile CEO John Legere witnessed outside the Department recently.

 

Source Credit: https://www.theverge.com/2019/5/29/18645121/justice-department-tmobile-sprint-new-carrier-rumor

About Author

Nikita Chaurasia    

Nikita Chaurasia

An accomplished professional in the field of content development, playing with words comes naturally to Nikita Chaurasia. After completing her post-graduate MBA degree in Advertising and PR, Nikita worked across numerous content-driven verticals, undertaking diverse r...

Read More

More News By Nikita Chaurasia

Atkore announces acquisition of Rocky Mountain Colby Pipe Co. assets
Atkore announces acquisition of Rocky Mountain Colby Pipe Co. assets
By Nikita Chaurasia

Atkore expands product portfolio with acquisition of Cor-Tek™ by Rocky Mountain  Atkore International Group Inc., a US-based electric solutions provider recently announced acquisition of assets of Rocky Mountain Colby Pipe Co., a front-ru...

Self-driving tech firm Waymo’s cars to be rain-tested in Florida
Self-driving tech firm Waymo’s cars to be rain-tested in Florida
By Nikita Chaurasia

Waymo is about to rain test some of its autonomous vehicles in Florida. The company wants to check if the autonomous driving technology withstands the heavy rainfall of the U.S state. The test aims to check how the vehicle's sensor suite includin...

Google blocks some data on Android devices for wireless carriers
Google blocks some data on Android devices for wireless carriers
By Nikita Chaurasia

Google decided to take this step over the fear of increasing data privacy problems across the world.   This step has disappointed the carriers using the service for various decision making processes like deciding where to upgrade and extend ...