FCC's Pai Circulates Order To Okay Sprint, T-Mobile Deal

Ajit Pai

U.S. Federal Communications Commission Chairman Ajit Pai on Wednesday circulated a draft order that would grant approval to the $26 billion tie-up of T-Mobile Us Inc and Sprint Corp.

“The evidence conclusively demonstrates that this transaction will bring fast 5G wireless service to many more Americans and help close the digital divide in rural areas,” Pai said in a statement.

Reuters reports the order must still be approved by two of the other four FCC commissioners. The U.S. Justice Department approved the merger last month, but the deal still faces a court challenge from 16 state attorneys general. A trial is set for Dec. 9 on the legal challenge by the states.

The lengthy draft FCC order has not been made public.

In May, Pai came out in favor of the deal after the companies offered concessions, including selling Sprint’s Boost Mobile prepaid cellphone service, as did FCC Commissioner Brendan Carr, a Republican. The panel’s third Republican, Mike O’Rielly, said in May he was “inclined to support” the proposed merger.

On Wednesday, Democratic FCC Commissioner Jessica Rosenworcel wrote on Twitter she was “not convinced that removing a competitor will lead to better outcomes for consumers” and said the public should be able to comment before the commissioners vote.