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Author Topic: T-Mobile-Sprint merger case begins tomorrow  (Read 10036 times)

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techy

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T-Mobile-Sprint merger case begins tomorrow
« on: December 09, 2019, 12:47:06 PM »


Tomorrow, December 9th, a trial begins in a Manhattan courtroom that will determine the fate of the T-Mobile and Sprint merger. 13 state attorneys general and the AG of Washington D.C. are seeking to block the $26.5 billion deal that was first announced on April 29th, 2018. The state attorneys general are concerned that the transaction is anti-competitive because it reduces the number of major U.S. carries by 25% to three from four. The plaintiffs don't believe that the deal in place between T-Mobile, Sprint and Dish Network that turns the latter into a "fourth nationwide facilities-based network competitor," will keep competition at the level where it currently stands.


If T-Mobile and Sprint close on the merger, Dish will pay $5 billion for Sprint's prepaid businesses including Boost Mobile and Virgin Mobile; Boost itself has 9.3 million customers. Dish will also get 14MHz of 800MHz spectrum from Sprint and 7,500 retail locations. In addition, the carrier will sign an MVNO agreement with T-Mobile allowing it to offer wireless service to consumers even as it builds out a standalone 5G network. And while this was good enough for the Justice Department, it does not placate the 13 state attorneys general that remain in the lawsuit. CNBC reports that the plaintiffs will argue in court that the deal with Dish Network will not be enough to make up for Sprint's departure. This makes us wonder whether the plaintiffs know what is going on in the U.S. wireless industry. Even Sprint's deep-pocketed parent SoftBank has pretty much given up on the company.



 

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