Sprint, T-Mobile urged to create new US carrier to win merger approval
By Nikita Chaurasia  Date: 2019-05-30

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

Tesla CEO Elon Musk reveals plans to build ventilators for COVID-19
Tesla CEO Elon Musk reveals plans to build ventilators for COVID-19
By Nikita Chaurasia

U.S. auto giant Tesla, Inc.’s CEO, Elon Musk has recently made headlines when he announced that his company is planning to develop ventilators for COVID-19 patients. The move comes after the United States government’s latest appeal for do...

Google News launches Project Oasis to support local entrepreneurs
Google News launches Project Oasis to support local entrepreneurs
By Nikita Chaurasia

Google News has apparently launched Project Oasis in partnership with the University of North Carolina, Table Stakes co-founder Doug Smith, and LION Publishers. The partnership is aimed at helping the founders and aspiring founders of digital ne...

Pfizer collaborates with BioNTech to develop coronavirus vaccine
Pfizer collaborates with BioNTech to develop coronavirus vaccine
By Nikita Chaurasia

Increasing numbers of coronavirus cases worldwide have prompted researchers to develop a potential vaccine candidate to treat COVID-19 patients. Pfizer Inc., one of the leading American pharmaceutical companies, has reportedly collaborated with BioNT...

Amplitude completes debut acquisition with ClearBrain buyout
Amplitude completes debut acquisition with ClearBrain buyout
By Nikita Chaurasia

Amplitude, a comprehensive product intelligence company, announced that it has acquired the software company ClearBrain to accelerate big product bets. The acquisition will enable customers of the company to estimate about the revenue growth driving ...

Vodafone launches its 5G network in limited parts of Australia
Vodafone launches its 5G network in limited parts of Australia
By Nikita Chaurasia

Vodafone has finally stepped up in the 5G race as it goes live with its 5G services in some parts of Australia. According to reports, the service will be available in select parts of Sydney. However, unlike other Australian telecoms, Vodafone will no...