Sprint and T-Mobile merger gets federal approval
The two cellphone carriers T-Mobile and Sprint are closer to merging as "New T-Mobile," following a US District judge's approval of the $26.5 billion merger.
As expected, US District Jude Victor Marrero has approved the merger of cell carriers T-Mobile and Sprint. The merger still has to be approved by the California Public Utilities Commission, but this announcement was seen as the last major hurdle to the $26.5 billion deal.
More than a dozen state Attorneys General had argued in front of the judge that merging these two companies would result in lessened competition.
"The combined market share of Sprint and T-Mobile would result in an increase in market
concentration that significantly exceeds the thresholds at which mergers are presumed to violate the antitrust laws," said a suit filed by the opposing parties. "This increased market concentration will result in diminished competition, higher prices, and reduced quality and innovation."
This merger represents T-Mobile and Sprint's third attempt to join their companies, and this effort was announced plan to merge back in April 2018. It was approved by the Department of Justice in July 2019.
Then in November 2019, the FCC approved the merger as well.
To get through these approval processes, T-Mobile offered concessions including a commitment to sell off Sprint's Boost Mobile subsidiary. Both T-Mobile and Sprint also committed to a three-year plan for expanding 5G coverage.
T-Mobile and Spring are, respectively, the US's third and fourth-largest cell carriers. The combined New T-Mobile will have 127 million customers, compared to AT&T's 144 million and Verizon's 150 million.
As expected, US District Jude Victor Marrero has approved the merger of cell carriers T-Mobile and Sprint. The merger still has to be approved by the California Public Utilities Commission, but this announcement was seen as the last major hurdle to the $26.5 billion deal.
More than a dozen state Attorneys General had argued in front of the judge that merging these two companies would result in lessened competition.
"The combined market share of Sprint and T-Mobile would result in an increase in market
concentration that significantly exceeds the thresholds at which mergers are presumed to violate the antitrust laws," said a suit filed by the opposing parties. "This increased market concentration will result in diminished competition, higher prices, and reduced quality and innovation."
This merger represents T-Mobile and Sprint's third attempt to join their companies, and this effort was announced plan to merge back in April 2018. It was approved by the Department of Justice in July 2019.
Then in November 2019, the FCC approved the merger as well.
To get through these approval processes, T-Mobile offered concessions including a commitment to sell off Sprint's Boost Mobile subsidiary. Both T-Mobile and Sprint also committed to a three-year plan for expanding 5G coverage.
T-Mobile and Spring are, respectively, the US's third and fourth-largest cell carriers. The combined New T-Mobile will have 127 million customers, compared to AT&T's 144 million and Verizon's 150 million.
Comments
Full disclosure: I've been with TMo for 2+ years now and been very happy overall, so this will only make it better.
"Thank you for calling AT&T support about the problem that you're having. In an effort to make you a happy customer, we'll automatically sign you up for higher speed data, HBO/Showtime/Cinemax/STARZ/5000 channel lineup on DirecTV, and not bill you for it until you forget we signed you up. Please understand this is a contracted term, so you're stuck with it for the next 8 years after the 43 day free period ends. Press 0 to get out of this offer, or 1 to talk to technical support, where they will ask you if you want even more services before actually helping you with your issue."
1
"Please wait for the next technical support person to answer the call. You are number 43 in line. If you'd like us to keep your place in line and call you back, press 8675308, and then your phone number, in reverse order, for security purposes."
8675309 *crap*
"Thank you for holding. Because it's going to be a long wait, let us tell you about how great this new offer we have is, and we'll direct you to 'the website' for the details..."
<14 minutes later>
"You are #42 in line. If you'd like us to keep your place in line and call you back, press 8675308, and then your phone number, prefix, area code, then number, for security purposes."
867530....8 4 6 5 5 0 3 *number... the whole phone number?*
That number is invalid. "Thank you for holding. Because it's going to be a long wait, let us tell you about how great this new offer we have is, and we'll direct you to 'the website' for the details..."
<184 minutes later>
"Thank you for calling technical support! I noticed you don't have Wireless in your car, and you have 3 children living at home aged 14, 10, and 6 months, and they love watching movies on the way to their friend Ercilio's house. I will send 3 units over, and there will be a small charge on your wireless bill for this stupendous service. Please let me know at the end of the call if you don't want them."
"I don't want them."
"OK, I will take them off your plan. Have a nice day!"
<ugh... he did say, "at the end of the call...">
Yeah, I'm on T-Mobile now.
One very telling thing is how each carrier handled their merger with a carrier using a different protocol (Nextel/IDEN for Sprint, MetroPCS/CDMA for T-Mobile). Sprint dragged on the Nextel brand, network, equipment and protocol for years and was incapable of developing an effective transitional strategy.
T-Mobile, on the other hand, was able to execute a flawless transition to a unified network, progressively moving all its customers to compatible equipment and converting all the MetroPCS towers to GSM. If I remember correctly it was pretty much done in a year or two.
So, if T-Mobile handles the merger, I suppose it could work, but if Sprint does it I fear the worst, because it's run by idiots. Unfortunately the fact that Legere left the company tells me a lot about the direction this turkey is going to fly, and instead of 3 major networks I think we're going to end up with AT&T and Verizon picking at the carcasses of the merged T-Mobile/Sprint after Sprint is done screwing everything up.