Earlier today, we informed you about the concessions that T-Mobile and Sprint have agreed, hoping to get the necessary approval from the FCC and the Justice Department for their $26.5 billion mergers. T-Mobile and Sprint will complete their 5G launch in three years, freezing prices at current levels during that period and selling Boost Mobile.
According to Reuters, it seems that the proposal has won the presidency of the FCC, Ajit Pai.
Pai said today he will recommend that the other four FCC Commissioners also approve the merger. One of the remaining 4, Brendan Carr, has announced that he will vote in favor of the transaction. But before making a final count, the FCC must first draw up an order. When this happens, the entire panel must vote to approve or reject the merger, which was originally announced in April 2018.
T-Mobile and Sprint are closer to the merger
In 2011, when T-Mobile was the fourth largest carrier in the country, but practically irrelevant in the United States, AT & T agreed to buy the company for 39 billion dollars. This agreement has undergone intense regulatory control and has been blocked by the justice department.
As a result, AT&T withdrew from the agreement and was forced to deliver more than $3 billion and 128 AWS markets to T-Mobile under the terms of its agreement. Then, in 2014, Sprint and T-Mobile raised the idea of a merger as a test balloon with the FCC and the DOJ. Both agencies told the two companies not to disturb.
Now, with T-Mobile, the most innovative and fastest growing of the four major wireless operators in the United States, A merger is no longer necessary to survive. However, with the next generation of wireless connectivity in its early days, the 2.5 GHz medium-range Sprint spectrum accumulates to adapt to the low-band T-Mobile treasure wave at 600 MHz.
And despite having had a father pocketed in SoftBank in Japan, Sprint struggled for a few years. Speaking of pocket parents, T-Mobile is largely owned by the German Deutsche Telekom. After the merger, the latter will own 42% of the combined company, while the former will have a 27% stake.
If the agreement is approved by the FCC, which seems likely, and the Justice Department also agrees, both companies will have until July 29 to close the transaction, unless it is extended again. The original deadline for closing the deal has been postponed from April 28th to July 29th.
A part of the delay is due to the changes made by T-Mobile to the documents presented to the FCC in relation to the projections made regarding the merger. The FCC also had to stop its review during the government’s arrest, which lasted just over a month, and again in March to allow consumers to comment on the transaction.
The Union of Communications Workers of America (CWA) complained that the agreement would result in the loss of approximately 28,000 jobs, mainly due to the closure of overlapping stores. T-Mobile CEO John Legere says that with the number of new customer service operators require to manage the phones, the agreement will add 3,000 new employees in the first year and 11,000 more by the year 2024.
So, with a declining regulatory agency and one to come, T-Mobile and the Sprint merger are so close to completing the merger that it may be time to order the new letterhead.
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