T-Mobile and Sprint Merger Unlikely to Be Approved as Currently Structured [Updated]

by

United States Justice Department staff members told Sprint and T-Mobile that their planned merger is unlikely to be approved as it is currently structured, reports The Wall Street Journal.

The merger agreement between the two companies hinges on approval from the Justice Department's antitrust division, which has been exploring whether the deal would result in a major threat to competition.

sprinttmobile

In a meeting earlier this month, Justice Department staff members laid out their concerns with the all-stock deal and questioned the companies' arguments that the combination would produce important efficiencies for the merged firm, the people said.

Sprint and T-Mobile have other hurdles to overcome as well. Multiple state attorneys are prepared to launch lawsuits if the Justice Department doesn't end up challenging the merger, according to sources that spoke to The Wall Street Journal.

The FCC has also been asking the two companies for more information on topics like cost savings and wireless infrastructure plans.

A final decision "likely several weeks away" and ultimately, the staff position on the matter is a recommendation that can be overruled by the Justice Department leaders.

Discussions are ongoing and Sprint and T-Mobile may be willing to offer concessions that include assets sales to get the government to approve the merger plans.

T-Mobile and Sprint first announced plans for a merger in April 2018. If approved, the merger will combine two of the four major carriers in the United States, giving the new company nearly 100 million customers.

Update: According to T-Mobile CEO John Legere, the "premise" of the WSJ's story is untrue, though Legere declined to provide additional details.

Top Rated Comments

macduke Avatar
23 months ago
Major threat to what competition? The two huge giants of AT&T and Verizon that already rule the land with an iron fist? I think a third player who is about the size of the two giants will be able to provide more competition than we have today. And let's face it—if somebody doesn't buy up Sprint they're just going to go bankrupt eventually and who do you think will be the highest bidders for their spectrum and infrastructure? AT&T and Verizon. I think T-Mobile has proven that they're more consumer friendly than anyone else out there. They just need to build up their network more.
Score: 13 Votes (Like | Disagree)
DonutHands Avatar
23 months ago

They're telling us that in the shadow of AT&T and Verizon, there is barely room for both a Sprint and T-Mobile. That is ridiculous.

Its probably not ridiculous, Id rather see 3 major companies in this sector than 2 of the minor companies go bankrupt and leave 2 giants remaining.
Score: 7 Votes (Like | Disagree)
Apple_Robert Avatar
23 months ago
I am surprised Sprint has lasted as long as they have. They continue to leverage themselves from loans to keep going. If the deal doesn't go through, I predict Sprint will go under in the next 2 - 3 years (if not sooner).
Score: 3 Votes (Like | Disagree)
mcalict Avatar
23 months ago

I am surprised Sprint has lasted as long as they have. They continue to leverage themselves from loans to keep going. If the deal doesn't go through, I predict Sprint will get go under in the next 2 - 3 years (if not sooner).

This ^^^.

If this deal isn't approved it's clear with Sprint's debt load they wouldn't survive as a long-term viable operation. Then we'd be left with the big 2, and a feisty, but limited resourced TMobile in 3rd. Better to have a strong 3rd consumer choice, even with the risk of an eventual elimination of redundancies, regardless of what promises are made now. Easy for me to say that last part, I know.
Score: 2 Votes (Like | Disagree)
goobot Avatar
23 months ago

Its probably not ridiculous, Id rather see 3 major companies in this sector than 2 of the minor companies go bankrupt and leave 2 giants remaining.

I can’t see T-mobile going anywhere anytime soon. Maybe sprint.
Score: 2 Votes (Like | Disagree)
konqerror Avatar
23 months ago


They're telling us that in the shadow of AT&T and Verizon, there is barely room for both a Sprint and T-Mobile. That is ridiculous.

Many countries have only 3 carriers (Germany, Austria, Switzerland, Portugal, Norway, Greece, Belgium, China*). Many others have 3 plus a weak 4th (Canada, Japan). There aren't many countries with 4 strong carriers.

You need to support your statement with some real economic analysis.
Score: 2 Votes (Like | Disagree)

Top Stories

bloodoxygenapplewatch

Apple Watch Series 7 Rumored to Feature Blood Glucose Monitoring

Monday January 25, 2021 5:05 am PST by
The Apple Watch Series 7 will reportedly feature blood glucose monitoring via an optical sensor, according to ETNews. The report, which mainly focuses on the blood glucose capabilities of the Samsung Galaxy Watch 4, explains that Apple is intending to bring blood glucose monitoring to the upcoming Apple Watch Series 7 using a non-invasive optical sensor. Measuring blood glucose levels,...
14

Apple Releases iOS 14.4 and iPadOS 14.4 With New Camera Warnings and Bug Fixes

Tuesday January 26, 2021 10:04 am PST by
Apple today released iOS and iPadOS 14.4, the fourth major updates to the iOS 14 operating system that was initially released in September. iOS and iPadOS 14.4 come more than a month after the release of iOS and iPadOS 14.3, updates that brought new emojis, Intercom support, and more. The iOS and iPadOS 14.4 updates can be downloaded for free and the software is available on all eligible...
7

Apple Releases watchOS 7.3 With Unity Watch Face, Expanded ECG Availability and More

Tuesday January 26, 2021 10:03 am PST by
Apple today released watchOS 7.3, the third major update to the watchOS 7 operating system that was released in September. watchOS 7.3 comes more than a month after watchOS 7.2, an update that brought support for Apple Fitness+ ‌‌The watchOS 7.3 update‌‌ can be downloaded for free through the dedicated Apple Watch app on the iPhone by going to General > Software Update. To install...
14

Apple Releases tvOS 14.4 for Fourth and Fifth-Generation Apple TV Models

Tuesday January 26, 2021 10:02 am PST by
Apple today released tvOS 14.4, the fifth update to the tvOS 14 operating system that was initially released back in September. tvOS 14.4 comes more than a month after the release of tvOS 14.3. tvOS 14.4, which is a free update, can be downloaded over the air through the Settings app on the ‌Apple TV‌ by going to System > Software Update. ‌‌‌‌Apple TV‌‌‌‌ owners who have...
14

Apple Releasing iOS 14.4 and watchOS 7.3 Later Today

Tuesday January 26, 2021 7:20 am PST by
In its Black History Month announcement this morning, Apple has confirmed that iOS 14.4 and watchOS 7.3 will be released later today. watchOS 7.3 expands the ECG app on the Apple Watch Series 4 and newer to Japan, Mayotte, Thailand, and the Philippines, while iOS 14.4 introduces a notification on iPhone 12 models with non-genuine cameras. Both software updates also add support for a new...
AirPods Pro Gen 2 Feature2

Second-Generation AirPods Pro Widely Rumored to Launch in First Half of 2021

Tuesday January 26, 2021 8:24 am PST by
Apple plans to release second-generation AirPods Pro within the first half of 2021, according to unnamed industry sources cited by Taiwanese publication DigiTimes in a report focused on flash memory supplier Winbond. From the report:Winbond is also expected to be among the NOR flash suppliers for Apple's next-generation AirPods Pro slated for launch later in the first half of this year, the...
apple watch black unity

Apple Celebrates Black History Month With Limited-Edition Watch, Featured Apps and Books, and More

Tuesday January 26, 2021 6:14 am PST by
Apple today announced that it will be celebrating Black History Month with curated content that highlights and amplifies Black creators, artists, developers, and businesses across the App Store, Apple Music, the Apple TV app, Apple Books, Apple Podcasts, and more. The content will be featured throughout the month of February. Black Unity Sport Band has "Truth. Power. Solidarity." ...
magsafecasedangle

Apple Elaborates on Potential for iPhone 12 and MagSafe Accessories to Interfere With Implantable Medical Devices

Saturday January 23, 2021 2:42 pm PST by
Since the launch of iPhone 12 models in October, Apple has acknowledged that the devices may cause electromagnetic interference with medical devices like pacemakers and defibrillators, but the company has now shared additional information. Apple added the following paragraph to a related support document today:Medical devices such as implanted pacemakers and defibrillators might contain...
14

iOS 14.4 Patches Vulnerabilities That May Have Been Actively Exploited

Tuesday January 26, 2021 12:16 pm PST by
Apple today released iOS 14.4 and iPadOS 14.4, and along with a handful of minor new features, the software introduces security fixes for three vulnerabilities that may have been used in the wild. According to a security support document shared by Apple, there were kernel and WebKit vulnerabilities affecting all iPhones and iPads running iOS or iPadOS 14. The kernel vulnerability could allow ...
matte black macbook pro colorware

Apple Researching High-End Titanium MacBook Casings With Unique Textured Finish

Tuesday January 26, 2021 7:10 am PST by
Apple is researching the use of processed titanium with unique properties for future MacBooks, iPads, and iPhones, according to a newly-granted patent application. In a filing titled "Titanium parts having a blasted surface texture," granted by the U.S. Patent and Trademark Office and spotted by Patently Apple, Apple explains how various devices could adopt titanium casings with a...