Tuesday, February 11, 2020

T-Mobile, Sprint Deal Wins Approval

A judge’s approval of T-Mobile US Inc.’s takeover of Sprint Corp. will usher in a new balance of power in the U.S. wireless market and test whether three giants will compete as aggressively for cellphone users as four unequal players once did, The Wall Street Journal reports.

U.S. District Judge Victor Marrero concluded the deal, worth $26 billion when it was struck two years ago, wasn’t likely to substantially lessen competition, and rejected the main arguments by a group of states seeking to block the deal as anti-competitive.

“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, adding that a closed deal would allow it to continue “T-Mobile’s undeniably successful business strategy for the foreseeable future.”

Judge Marrero rejected the states’ argument that Sprint, without the deal, could continue competing. He also said a deal brokered by federal regulators to set up Dish Network Corp. as a new cellular phone service provider would benefit consumers.

The opinion will leave most of the country’s wireless customers with three major network operators: Verizon Communications Inc., AT&T Inc. and the new T-Mobile.

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