05.11.2019 23:24:16
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FCC Approves Sprint, T-Mobile Merger
(RTTNews) - The US Federal Communications Commission has approved the T-Mobile-Sprint merger, but with certain conditions.
The Commission said it found that the transaction will help close the digital divide and advance United States leadership in 5G, the next generation of wireless connectivity. Specifically, TMobile and Sprint have committed within three years to deploy 5G service to cover 97% of the American people, and within six years to reach 99% of all Americans. This commitment includes deploying 5G service to cover 85% of rural Americans within three years and 90% of rural Americans within six years.
The FCC said its approval of the merger is conditional on those promises, and the parties could be fined over $2 billion if they don't meet those goals.
The Commission noted that the merger will not harm competition, despite several state attorneys general and a couple of FCC commissioners have argued otherwise.
"While the parties promise their merger will accelerate the availability of some form of '5G' for some Americans, history teaches us that the most likely effect of this merger will be higher prices and fewer options for all Americans," said Commissioner Geoffrey Starks in a statement.
Last year, T-Mobile and Sprint announced plans to merge in an all-stock deal worth $26 billion. The deal values Sprint at $59 billion, while the combined company would be worth $146 billion. T-Mobile's John Legere will serving as CEO of the combined company and Mike Sievert will continue to operate as COO.
The deal has already received approval from the Department of Justice, while FCC Chairman Ajit Pai had previously announced he will back the deal.
Chairman Ajit Pai and two other Republican commissioners voted to approve the deal while two Democratic commissioners voted against it.
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Aktien in diesem Artikel
T-Mobile US | 211,70 | -0,40% |