If everything goes as planned, today will mark a historic day for the American telecommunications industry as two giants are set to merge. The Federal Communications Commission and the Department of Justice have already approved the $26.5 billion deal, but a lawsuit filed last June by ten state attorneys general is what is holding the deal back.
The lawsuit essentially argues that the merger would be anti-competitive and would result in higher prices and worse service, but T-Mobile and Sprint have maintained since the merger was announced that the deal would create competition, lower prices, create American jobs, and let the combined company create a strong 5G network.
T-Mobile and Sprint did agree to create more competition by creating a fourth wireless carrier that will be run by Dish. Dish’s plan is to take Boost Mobile, currently owned by Sprint, and combine it with spectrum it already owns to make a 5G network. T-Mobile will also let Dish use its network for the next seven years as Dish builds up its network. But antitrust experts say that it’s unlikely that Dish will actually be a viable competitor, and historically, similar types of commitments from other huge telecom mergers haven’t exactly panned out.
According to The New York Times and The Wall Street Journal’s well-guarded sources — a judge is expected to rule in favor of T-Mobile and Sprint in the lawsuit that attempted to stop their industry-changing merger. That should finally allow T-Mobile and Sprint to combine to take on AT&T and Verizon, as that means we may finally see if the combined company will be as good as T-Mobile and Sprint have promised — or if there’ll be less competition than ever.
None of the companies involved have read the actual ruling yet, according to The New York Times, so there’s a chance there are conditions that could affect the deal in some way. Wetaya.com will keep you updated on the final outcome.