Following more than a year of
regulatory scrutiny, the U.S. Department of Justice today
announced that it has approved the $26 billion merger of T-Mobile and Sprint, although with several conditions attached.
T-Mobile and Sprint will
join together as "New T-Mobile" to become a dominant third carrier in the United States alongside Verizon and AT&T. Together, the companies have committed to building out a nationwide 5G network covering 97 percent of the U.S. population within three years and 99 percent within six years.
T-Mobile and Sprint earlier promised that they will not raise prices for three years following the completion of the merger.
Under the terms of the proposed deal, T-Mobile and Sprint must divest a substantial package of assets to Dish Network, including Sprint's prepaid subsidiaries Boost Mobile and Virgin Mobile and some 800MHz spectrum. Dish will also gain access to at least 20,000 cell sites and hundreds of retail locations.
The deal paves the way for Dish to
become the fourth nationwide facilities-based wireless carrier in the United States, ensuring a competitive landscape. Dish has announced that it plans to deploy a 5G broadband network capable of serving 70 percent of the U.S. population by June 2023.
FCC chairman Ajit Pai:T-Mobile CEO John Legere:The merger remains subject to remaining regulatory approvals and certain other customary closing conditions. Additionally, a number of states filed an antitrust lawsuit in U.S. federal court in June to block the proposed transaction; that lawsuit remains on the docket and must be resolved before the merger can go forward.
Regardless, T-Mobile and Sprint expect to receive final federal regulatory approval in the third quarter of 2019 and anticipate that the merger will be permitted to close by the end of the year.
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Department of Justice Approves $26B Merger of T-Mobile and Sprint