T-Mobile’s $56 billion deal to merge with Sprint has gotten the final green light, after a federal judge shot down a lawsuit from several U.S. state attorneys general that sought to block the combo.
The union of T-Mobile and Sprint will create a wireless carrier with more than 100 million customers, which the companies have claimed will provide stronger competition especially on 5G to bigger rivals AT&T and Verizon. Consumer advocates and the AGs that sued to block the deal argue that it will reduce choice and lead to higher consumer prices.
The FCC and the Justice Department had previously approved the tie-up, under which Sprint is selling certain assets to Dish Network.
In a ruling Tuesday, Judge Victor Marrero of the U.S. District Court for the Southern District of New York rejected the lawsuit from AGs for 13 states and the District of Columbia to block the T-Mobile-Sprint merger. “T-Mobile has redefined itself over the past decade as a maverick that has spurred the two largest players in its industry to make numerous pro-consumer changes,” the judge wrote in the decision. “The proposed merger would allow the merged company to continue T-Mobile’s undeniably successful business strategy for the foreseeable future.”
John Legere, T-Mobile’s soon-to-depart CEO, cheered the ruling. “Today was a huge victory for this merger … and now we are FINALLY able to focus on the last steps to get this merger done!” he said in a statement.
“I’m pleased with the district court’s decision. The T-Mobile-Sprint merger will help close the digital divide and secure United States leadership in 5G.
After the merger, T-Mobile has committed to deploy 5G to 97% of the U.S. population within three years and 99% of Americans within six years. That includes commitments that its 5G network will reach 85% of rural Americans within three years and 90% within six years.
FCC Chairman Ajit Pai also applauded the court’s decision Tuesday. “This transaction represents a unique opportunity to speed up the deployment of 5G throughout the United States, put critical mid-band spectrum to more productive use, and bring much faster mobile broadband to rural Americans,” Pai said in a statement. “This is a big win for American consumers.”
More to come.
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