The US Department of Justice (DOJ) has already signed the $26.5 billion T-Mobile-Sprint merger and FCC will vote in favor of the merger in the coming days. Therefore, the only thing that is really delaying the agreement from closure is a lawsuit filed by 15 state attorneys general and the Washington D.C. Attorney General, who is trying to block the merger. The states have successfully delayed the start of the process until December 9 and T-Mobile says it will not close the merger until the dispute is resolved.
T-Mobile could wait for the process to end, but instead, the company and its merger partner could try to start transaction talks with the plaintiffs. Fox Business News reports that T-Mobile and Sprint discussed general ideas about what would be needed to resolve the case before the trial began with each other and with attorneys general. The report states that it is not known how prosecutors responded to T-Mobile-Sprint and whether the possibility exists to reach an agreement. However, one person who claimed to be aware of the talks said that both sides were “miles away” and that no deal is imminent.
T-Mobile wants the Sprint Hoard with an average spectrum of 2.5 GHz
The states that joined the case argue that the merger between the third and fourth-largest wireless service provider in the country is anticompetitive and will cost its residents over $4.5 billion in additional costs each year. However, under an agreement signed by T-Mobile to receive the support of the FCC president Ajit Pai, the operator agreed to freeze the prices of his plan for three years after the merger ended. Neither the FCC agreement nor the Justice Department’s agreement was sufficient to appease the plaintiffs. To obtain the approval of the Justice Department from the merger, Sprint sold its prepaid assets (including Virgin Mobile and Boost Mobile) and an 800 MHz spectrum to Dish Mobile for $5 billion. The latter will create a new national wireless competitor to replace Sprint and sign a seven-year MVNO agreement with T-Mobile; This allows Dish to sell the wireless service to consumers under its own name, although the T-Mobile network will be used. As this happens, Dish will spend billions to create its own independent 5G network.
T-Mobile, which is already the leading fastest growing US operator wants to take the Sprint’ hoard of the 2.5 GHz medium band spectrum. The company wants to use it in combination with its low bandwidth of 600 MHz media and its high bandwidth wave bandwidth to build the first 5G national network in the US. The wireless service provider recently conducted successful tests that allowed it to run 5G data sessions in the 600 MHz spectrum where it spent nearly $8 billion in 2017. Bottom band waves travel farther and penetrate better than buildings at the highest frequency spectrum. For example, the mmWave spectrum does not travel so far or penetrates well into buildings, but they have greater traffic capacity and offer higher speeds. That’s why T-Mobile wants to use a combination of low, medium and high bandwidth spectrum for its 5G network.
In the event that it is not possible to reach an agreement and the process results in a sentence against the merger, T-Mobile and Sprint could appeal. However, we are witnessing years of legal battles. It would probably be in the best interest of all interested parties to sit at the table and reach an agreement that would allow the merger to close. Just in case, T-Mobile allegedly harassed the FCC, so you loaded a medium band spectrum in the 3.7 GHz to 4.2 GHz range.
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