NYAG Reportedly Probes T-Mobile-Sprint Deal's Impact On Prepaid Services

(RTTNews) - The New York attorney general's office is investigating how T-Mobile US Inc.'s (TMUS) $26 billion deal to buy Sprint Corp. (S) could impact competition in the pay-as-you-go wireless market, the Wall Street Journal reported citing people familiar with the matter.

Representatives from the state attorney general's office have contacted companies that sell prepaid phone services in recent weeks with questions about pricing and customers, the people said. Dozens of other state attorneys general are part of the probe, the report said.

Prepaid subscribers don't sign long-term contracts and instead pay up front each month. Some prepaid brands called mobile virtual-network operators rent network capacity from the large U.S. wireless carriers rather than owning the infrastructure.

T-Mobile and Sprint together have about 30 million prepaid customers.

Los Angeles-based FreedomPop and Ting Inc. are among the firms the New York attorney general's office has contacted, the report said, and officials within the top New York prosecutor's office plan to hold meetings with executives of some prepaid carriers in the coming weeks.