T-Mobile/Sprint merger is now formally endorsed by nine states, opposed by many more

T-Mobile/Sprint merger is now formally endorsed by nine states, opposed by many more
Pretty much everything that T-Mobile announced with great fanfare last week, from providing free 5G access to every first responder across the country for no less than 10 years to free service altogether for 10 million households, hinges on the creation of a "supercharged Un-carrier." But even though Magenta has recently obtained legal and regulatory approvals from both the Department of Justice and Federal Communications Commission, one big hurdle still stands in the way of a Sprint merger.

A grand total of ten attorney generals from nine US states and Washington, D.C., filed a lawsuit to block the $26.5 billion mega deal several months back, and although T-Mobile and Sprint managed to reach settlements with both Colorado and Mississippi before the legal action could get underway, a bunch of other states also joined the opposition since June.

Meanwhile, several other state AGs that didn't initially pick a side have decided to express their formal support for the divisive carrier union, thus increasing the pressure on others to fold and accept the inevitable. The latest name added to a list that only included six states back in August is Arkansas, which joins Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma, and South Dakota in a settlement coordinated by the Justice Department's Antitrust Division.

Under the terms of this agreement, Sprint's entire prepaid business will need to be divested to Dish to ensure fair competition in the wireless service space through the birth of a new fourth-largest mobile network operator also due to gain "certain spectrum assets", at least 20,000 cell sites, hundreds of retail locations, as well as "robust access to the T-Mobile network for a period of seven years while Dish builds out its own 5G network" in exchange for around $5 billion in total.

The DOJ's Antitrust Division believes the competition Dish will be able to provide once this massive transition is completed, as well as a combined T-Mobile and Sprint, will deliver "increased value to residents of Arkansas and consumers nationwide." 

Clearly, Arkansas AG Leslie Rutledge agrees with that view, and so do eight other top law enforcement officers nationwide, but that still leaves more states opposed to the deal than supporting it. And T-Mobile either needs everyone on board or to win the trial set to begin on December 9. We'll see what happens, but you should definitely not hold your breath for a definitive conclusion to this saga anytime soon.

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6 Comments

1. applesnapple93

Posts: 339; Member since: Jan 06, 2016

How many is many more?

3. MrMalignance

Posts: 331; Member since: Feb 17, 2013

I agree: how many? It seems like this would be a basic thing, to give information as to how many oppose the merger currently

2. therealunforgiven

Posts: 4; Member since: Apr 24, 2019

This just blows my mind. This could be great for everyone. They're afraid that t mobile might turn out to be like Verizon already is. I think t mobile will stick to their word and deploy many upgrades and will help so many. When you dont live in a city and have 100 options for internet or cell phone services I can see why been cry babies some. How on earth is it even possible to sue someone for trying to buy a company. Go ask Verizon to give free service to first responders for 10 years. Let me know how that works out for you. At&t and Verizon both need big competition. T mobile with what sprint has would change everything. We wouldn't have unlimited data if it wasn't for t mobile. They took it away and when t mobile offers it they let us have it now. Is it 100% unlimited no. Its better than watching your data all the time. I think we need to get alot of really big boats and take all cry babies and let them live on island together.

4. Venom

Posts: 3826; Member since: Dec 14, 2017

I don't really see what the States could do to stop it. The federal level FCC and FTC have signed off on it. It's a done deal. It needs to be done because Sprint is dead otherwise.

6. tedkord

Posts: 17480; Member since: Jun 17, 2009

The states can and some have, sued to stop the merger.

5. manuellopesusa

Posts: 1; Member since: Nov 11, 2019

I love to know what Verizon and AT&T Have behind all this story

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