U.S. Justice Department 'Leaning Against' Approving T-Mobile/Sprint Merger

Discussion in 'MacRumors.com News Discussion' started by MacRumors, May 20, 2019.

  1. MacRumors macrumors bot

    MacRumors

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    The United States Justice Department is "leaning against" approving the merger between T-Mobile and Sprint, reports Bloomberg.

    The merger might not be approved because the two companies "don't go far enough" to resolve antitrust concerns raised by the U.S. government.

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    Bloomberg's report comes shortly after United States Federal Communications Chairman Ajit Pai said that he would recommend approval of the merger between Sprint and T-Mobile.

    T-Mobile and Sprint have implemented changes to their merger to allay concerns, including the sale of Boost Mobile, a three-year buildout of a 5G network, and a pledge not to raise prices while the network is being built, but these steps may not be enough to earn approval.

    Back in April, there were reports suggesting the DoJ had told Sprint and T-Mobile that the merger would not be approved as it was originally structured, which prompted the plans to sell Boost Mobile.

    Sprint and T-Mobile first announced a merger agreement in April 2018, but the completion of the merger requires the government to approve the deal. A merger between Sprint and T-Mobile would combine two of the four major carriers in the U.S., and it would use the T-Mobile name.

    The two companies would have close to 100 million customers, putting it second only to Verizon. The U.S. DoJ is concerned the deal would be a major threat to competition.

    Sprint and T-Mobile planned to have the merger completed no later than the first half of 2019, but that date was pushed back to late July earlier this year.

    Article Link: U.S. Justice Department 'Leaning Against' Approving T-Mobile/Sprint Merger
     
  2. Baymowe335 macrumors 601

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    Good. These wireless companies have too much pricing power.
     
  3. myapple2019 macrumors member

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    The merger will hurt their customers with potential price increase and employees with lay off due to eliminating duplications including stores, departments, etc. After all, t-mobile is not a non profit organization. As a profit based organization, maximizing profit is t-mobile ultimate goal, like other profit based organizations.
     
  4. bpeeps macrumors 68030

    bpeeps

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    After the Disney/Fox and TWC/Charter mergers I didn't think the DOJ still had a pulse. This is good news if true.
     
  5. JetTester macrumors 6502

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    Consolidating to 3 major players puts too much power in the hands of a few. I prefer to have many choices, resulting in lower prices. We just switched our phones from Verizon to Consumer Cellular, and the cost for exactly the same service is only 1/3 of what we used to pay.
     
  6. hermes16 macrumors member

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    They didn't have any issues when Cingular bought AT&T. I understand that AT&T was bankrupt at the time but it made them one of the top 2 companies.
     
  7. Degerz macrumors newbie

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    So much for 'national' 5G coverage ...
     
  8. Baymowe335 macrumors 601

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    This is definitely different than the Disney/Fox one. These cell providers are essentially commodities. We need more competition there. Disney has tons of competition and you don't really have to use any Disney service like you do wireless, internet, etc.
     
  9. btrach144 macrumors 68000

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    Wow, this is turning into a drama. Personally, I think it should be approved. Sprint will fail soon. Why let them turn into dust?
     
  10. alexandr macrumors 6502a

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    how exactly? t-mobile is actually the one carrier that is making vz and att give customers more bang for their buck.

     
  11. rk-apple macrumors newbie

    rk-apple

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    I normally don’t like big mergers. But this one I am for. I think AT&T and Verizon are not focused enough on the consumer. T-Mobile gets it. My family of four saves easily $60 per month with T-mobile over AT&T. And much better customer service. The merger should help T-Mobile compete.

    And, T-mobile’s 5G service runs very much differently than that of AT&T or Verizon. That is good competition, and the merger should strengthen T-Mobile’s ability to compete in the 5G future.
     
  12. viachicago22 macrumors 6502

    viachicago22

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    That is a weird headline (I realize it came from Bloomberg). Leaning against approving? Isn’t leaning toward denying clearer?
     
  13. calzon65 macrumors 6502a

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  14. jlseattle macrumors 6502

    jlseattle

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    Haha, they didn't pay the right people the right amount of money. The orange monster needs more money! Maybe this is a shot across the bow of the telecoms to pony up more money and favors for approval.
     
  15. JessWinter macrumors member

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    It's a terrible headline lol I agree. Confusing and unnecessary.
     
  16. JM macrumors 6502a

    JM

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    Sprint will have to go bankrupt and sell their spectrum in an auction.

    I’m very surprised and puzzled Sprint hasn’t already failed. Points to them for surviving so long, though.
     
  17. kpeex macrumors member

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  18. 2010mini macrumors 601

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    FCC won’t provide any more spectrum for Cellular companies to grow. So they are left with buying up or merging with other companies in order to meet demand. At the same time, the DOJ, FCC, and sometimes the Whitehouse tries to block mergers/sales.

    WTF is cellular companies to do then???
     
  19. Baymowe335 macrumors 601

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    I think the worry is a merger would cause them to act more like ATT and VZ.
     
  20. Breaking Good macrumors 65816

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    If FCC approves and DOJ doesn't I would suspect the next stop is court where the DOJ would have to explain how this affects competition.

    I'm looking forward to hearing the DOJ explain how consumers would be helped if Sprint failed as a business.
     
  21. Braderunner macrumors 6502a

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    Why NOT let them turn into dust? Either way they are gone. T-Mobile should save it’s money.
     
  22. alexandr macrumors 6502a

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    well that's an entirely differing concern, isn't it? i trust they wouldn't go that route. honestly they are powerful enough without sprint to show signs of such intentions, aren't they?
     
  23. Breaking Good macrumors 65816

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    What do you think would happen to those employees if Sprint goes out of business?
     
  24. Baymowe335 macrumors 601

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    They are definitely the third most powerful.
     
  25. mi7chy macrumors 603

    mi7chy

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    AT&T and Verizon are the top two while Sprint is last. Worse decision if the merger doesn't go through and Sprint ends up BK.
     

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