US regulators have approved the $ 26.5 billion acquisition of Rival Sprint of T-Mobile, despite the high prices and fears of a job cut, in a deal that leaves only three major cellphone companies in the country.
After agreeing to the terms of Sprint and T-Mobile, on Friday, the approval was given to the Department of Justice and five State Attorney General, who received satellite-TV provider Dish from Verizon, AT & T and T-Mobile-Sprint Company, a small competitor.
Will set it in the form. Judge of the Department of Justice, Maken Delrayham said that the conditions have established the dish “as a disruptive force in wireless”.
But the general lawyers of other states and public-interest advocates say that the dish is hardly a replacement for Sprint as the sole company and fails to harm the competition due to the conditions: high prices of the deal, Losses and fewer options for consumers. .
A federal judge should still sign the approval, because the conditions for them are included in the disposal of two companies with justice.
The Federal Communications Commission is also expected to give its blessings to the acquisition.
Dish is paying $ 5 billion for Sprint’s prepaid cellphone brands from both companies, including Boost and Virgin Mobile – about 9 million customers – and some spectrum for wireless service, or airwaves. Dish can also rent the T-Mobile network for seven years, while it builds its own.
Dish had promised to FCC on Friday that he would build a nationwide network by using the next generation “5G” technology by June 2023.
But the dish is a promising moment, which is a little higher than today’s specific, even if 5G promises the possibility of blazing motion.
The Trump administration has not been consistent in its approach to media and telecommunications mergers.
Although the government went to court to block AT & T Time Warner’s takeover and then lost, the Justice Department allowed Disney to buy 21st Century Fox with only minor property sales to deal.
Merger between direct competitors was historically a high time to clarify in the Justice Department.
Sprint and T-Mobile combined will now approach the size of Verizon and AT & T. Companies have argued that bulking up would mean a better next-generation “5G” wireless network could either be built on its own.
Sprint and T-Mobile have argued for more than a year that instead of being a big company to challenge AT & T and Verizon, it would be better for US consumers than two small companies.
Both companies tried to combine during the Obama administration but regulators reprimanded them.
Once President Donald Trump hoped for more industry-friendly regulators, he resumed negotiations after assuming charge as President Donald Trump. Companies urged Trump’s desire to “win” the global 5G race with China.
Meanwhile, after the promise of T-Mobile to make rural broadband and 5G almost in the whole country, after the promise of selling its Boost prepaid brand and maintaining prices for three years, FCC agreed on the deal in May Expressed it.
But attorney general of 13 states and Columbia District – are different from those five states who have approved the deal – have filed a lawsuit for blocking the deal.
They say that the promised benefits, such as better network in rural areas and overall fast service, can not be verified.
They also worry that eliminating a major wireless company will result in immediate reduction in the competition and the increase in prices for the cellphone service will cause consumers immediate damage.
The New York Attorney General Letitia James said in a statement, “We have serious concern that combining this new fourth mobile player will not harm consumers, workers, and innovators who win and lose the government.”
T-Mobile CEO John Lagere said on Friday that he believes that the deal can be closed by the end of the year and the company will be associated with the state’s attorney general, who will oppose the deal.
Dish is a company with a downturn satellite TV business. It does not have any wireless business, but in the last decade, it has spent more than $ 21 billion while depositing a large spectrum of spectrum for wireless service.
The wireless industry has long been suspicious of the ambitions of the dish, rather than actually building a wireless service, to estimate that the company wanted to make money by selling its holdings to other companies.
Long-time telecommunications analyst, Rickon Analytics founder Roger Antonner said that the settlement was good for T-Mobile, AT & T and Verizon, because a weak contestant in Sprint is being replaced by a weak in the dish.
There is also a cellular network, along with Sprint, the current number 4 wireless provider, thousands of stores and other distribution points. None of the dishes, although the settlement gives the option to take.