DOJ approves Sprint / T-Mobile mega merger
The DOJ’s blessing marks a critical breakthrough for T-Mobile and Sprint as they seek to join forces against Verizon and AT&T, which owns CNN. The smaller carriers argue they must merge in order to compete more effectively, especially as the industry moves toward next-generation 5G technology. But critics argue the tie-up will lead to higher prices and less innovation, and the merger may not close until a multi-state lawsuit to block the deal is resolved.
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The DOJ’s settlement was joined by five states that are not part of the lawsuit.
For weeks, Sprint and T-Mobile have been negotiating an agreement with the DOJ to address concerns that the merger may harm competition. The resulting settlement Friday requires the combined company to spin off customers and assets to create a fresh replacement for Sprint in the cutthroat wireless business.
Picking up the pieces will be satellite provider Dish Network. Under the deal with DOJ, Dish will take over Boost Mobile, Virgin Mobile and Sprint’s prepaid wireless business, totaling about 9 million subscribers. Dish will also purchase a chunk of valuable wireless airwaves from Sprint. Those airwaves could help rural Americans gain access to mobile Internet, according to the Justice Department.
The settlement also gives the new Dish-owned carrier the right to use T-Mobile’s network for seven years, a condition meant to create breathing room.
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