Mobile and Sprint merger hits opposition from 10 state attorneys general

Share
Mobile and Sprint merger hits opposition from 10 state attorneys general

"The T-Mobile and Sprint merger would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans, but would particularly affect lower-income and minority communities here in NY and in urban areas across the country".

The complaint was filed in United States District Court for the Southern District of ny.

Ajit Pai, chairman of the Federal Communications Commission, said last month that he favored the deal, which is expected to reshape the US wireless industry.

James also said her office did not notify Justice before the states filed the lawsuit, adding it was not required for them to do so.

Other attorneys general joining Tuesday's lawsuit are from Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia and Wisconsin.

T-Mobile, whose parent company is Deutsche Telekom AG, and Sprint, controlled by Japan's SoftBank Group Ltd, did not comment.

The lawsuit, led by the attorneys general of NY and California, represents a major legal and political headache that could upend the $26 billion telecom tie-up, which also has divided federal regulators in Washington who must bless the deal in order for it to proceed.

T-Mobile declined comment to the Associated Press, while Sprint and the Justice Department did not immediately respond to requests for comment. They say that combining Sprint and T-Mobile will make the industry as a whole - Verizon and AT&T, too - less likely to offer plans and services that consumers like.

While AT&T and Verizon dominate the overall USA wireless market, T-Mobile is the most popular among customers who make less than $75,000 per year, and Sprint's Boost Mobile prepaid brand counts 83 percent of its users in that income range, according to Kagan, S&P Global Market Intelligence data. "If consummated, the merger will eliminate the competition between Sprint and T-Mobile", the states said in the complaint.

The two companies have been in regular contact with regulators as they lobby for approval. It's an assessment several Wall Street analysts have agreed with.

T-Mobile has a reputation for consumer-friendly changes to the cellphone industry.

T-Mobile, trying to reassure critics, promised the FCC it would build out a 5G network and invest in rural broadband on a specific timeframe or pay penalties. The companies offered to preserve some prices and rate plans and divest Sprint's prepaid phone business, called Boost Mobile, to a third party.

In May Pai and the FCC gave a thumbs up to the deal with the chairman touting the deal's potential improvements for 5G network deployment and increasing coverage in rural America.

But public-interest advocates said these conditions did not address the deal's main criticisms - higher prices in the long run and less wireless competition- and would be hard for regulators to enforce.

Since being announced a year ago, T-Mobile's push to merge with Sprint has been met with strong government pushback over concerns it would harm competition. It's unclear how Justice Department antitrust chief Makan Delrahim will decide, but the antitrust division staff has reportedly recommended that the merger be blocked. "Nor does it prevent T-Mobile from raising prices after the commitment ends".

Share

Advertisement

Related Posts

House Debates Contempt Lawsuits For Trump Investigations
House Republicans had already started trying to discredit Dean as a witness before Trump's tweets . Dean testified that Mueller has provided Congress with a "road map" for investigating Trump .

Is this really the Google Pixel 4?
At Google I/O in 2016, the company showed live demonstrations that were recorded on video. As for pricing, the Pixel 3 starts at $799 while the Pixel 3 XL is priced at $899 and up.

Fourth American reported dead at Dominican Republic resort in past two months
Both causes of death happened to be related to "hemorrhaging, pulmonary edema and enlarged hearts", The Washington Post reports . For most of his career, Wallace owned Wallace Construction in Turlock, and had built many apartment and condominium projects.

U.S. Is 'Ready, Excited, Hungry' As It Takes On Thailand
This game likely won't be hard , so coach Jill Ellis might start some of her backups and keep key players benched. Along with winning championships and setting records, the US women hope to break through barriers in their sport.

Messi edges out Ronaldo to head Forbes top 100 highest paid athletes
Lionel Messi was the world's highest paid athlete over the past year, Forbes reported on Tuesday in its annual sporting rich list. Tennis star Serena Williams was the only woman to feature, coming in 63rd.

WWC roundup: Spain survives South Africa challenge
Spain was not done, though, as Garcia capped her impressive cameo with a composed finish to move the team to the top of Group B. Nigeria were hurt when defender Faith Michael was stretchered off after a collision with her keeper early in the second half.

Alex Morgan goes Steph Curry with goal celebration
After netting four times in six minutes shortly after the restart, they then added six more goals in the last 16 minutes. Morgan put her arm around Thailand's Miranda Nild, who was wiping away tears on the field.

Marta to miss Brazil's WWC opener
They were the first women's soccer team from a Caribbean country to quality for the prestigious soccer tournament. The Jamaica keeper twice denied Debinha when the Brazilian forward was through on goal.

There's an enormous, mysterious mass under the Moon's largest crater
Despite its size, however, we can't see this crated from Earth because it's on the far ( dark) side of the Moon . James , Ph.D., assistant professor of planetary geophysics in Baylor's College of Arts & Sciences.

Cup race at Michigan postponed until Monday
EDT), the second time in just over a month that a Cup race has been pushed past the weekend because of weather. The track was nearly dry by 4:15 p.m. when another rain cell struck.

© 2015 ExpressNewsline. All Rights reserved.