States seek to delay important hearing related to T-Mobile-Sprint merger
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Back in July, after T-Mobile and Sprint agreed to set up Dish Network as the "fourth nationwide facilities-based network competitor" to replace Sprint following their merger, the Justice Department (DOJ) agreed to allow the $26.5 billion deal to take place. The DOJ, concerned with antitrust issues, wanted to make sure that the U.S. would continue to have four major wireless providers after the transaction closes.
Thus, Sprint agreed to sell to Dish all of its pre-paid businesses including Boost Mobile, Virgin Mobile, and its own branded pre-paid unit. It also sold Dish some of its 800MHz spectrum, some retail stores, and cell sites. In addition, Dish signed a seven-year MVNO agreement with T-Mobile; this will allow the satellite content provider to sell wireless service using T-Mobile's network as it builds out its own standalone 5G network.
The FCC earlier this month approved the merger, which was first announced on April 29th, 2018. That leaves one remaining hurdle, a lawsuit filed by 18 state attorneys general and the attorney general of Washington D.C. seeking to block the merger. The trial is set to begin on December 9th and T-Mobile has already made a deal with Mississippi. To placate the AG of that state, T-Mobile and Sprint agreed to cover at least 62% of the state's urban and rural populations with 5G signals (carrying download data speeds of 100Mbps or faster) within three years after the deal closes. Within six years after the deal closes, 92% of the general population of Mississippi and 88% of the rural population must be able to access 5G. And just days ago, an agreement was made with the attorney general of Colorado dropping the number of plaintiffs by two to 16. To grease the wheels in Colorado, Dish reportedly promised to bring 2,000 new jobs to the state. Of course, the Dish deal with Sprint is contingent on Sprint merging with T-Mobile; so with all oars rowing in unison, perhaps an agreement can be made with the states remaining in the suit.
Both T-Mobile and Sprint have agreed not to close the merger until the lawsuit filed by the state attorneys general is decided. However, once the Tunney Act review is complete, T-Mobile, within 90-days, can start turning over to Dish some of the assets that the latter agreed to purchase. The DOJ notes that "No useful purpose would be served by delaying the deadline to enable that entry."
Things that are NOT allowed: