Wednesday, November 6, 2019

FCC Okays T-Mobile, Sprint Merger

The FCC has formally approved T-Mobile US Inc.’s merger with smaller rival Sprint Corp., in a 3-2 vote split among party lines, reports The Wall Street Journal.

The top telecommunications regulator’s two Democratic members, Jessica Rosenworcel and Geoffrey Starks, opposed the deal, while the three Republican members including Chairman Ajit Pai voted to approve it. Ms. Rosenworcel and Mr. Starks said the deal would harm competition and consumers.

The FCC’s vote was largely procedural as the agency earlier this year signaled its support for the deal. Mr. Pai in May said he would back the $26 billion combination after the two carriers agreed to a package of concessions including the divestiture of some Sprint prepaid customers. The FCC evaluates whether deals are in the public interest, while the Justice Department, which has also approved the transaction, evaluates the likely effects a tie-up will have on competition.

When federal antitrust officials in July announced a settlement with the companies that included shedding spectrum and helping Dish Network Corp. create a new wireless carrier, the FCC said the pact coupled with the carriers’ earlier commitments to deploy a nationwide 5G network would advance the U.S.’s goal of leading the rollout of faster wireless networks.

A group of state attorneys general, led by New York and California, filed a lawsuit in June to block the deal, saying it would drive up prices for cellphone services. Some states have defected in recent weeks, but the case is set to go to court Dec. 9.

Mr. Pai said Tuesday morning at a Council on Foreign Relations meeting in New York that he hopes the states don’t prevail. He said putting some of Sprint’s under-utilized mid-band spectrum to use would be beneficial to the build-out of 5G in the U.S.

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