Ten US states sue to stop Sprint merger with T-Mobile
US attorneys general file an antitrust lawsuit to block the potential Sprint/T-Mobile merger.
Sprint's impending $26.5 billion merger with T-Mobile could be in jeopardy. Ten US state attorneys general are suing to stop the merger between the telecommunications companies.
Why are states suing to block the Sprint/T-Mobile merger?
In the antitrust complaint filed by the attorneys general, they allege that the potential merger between the phone companies could lead to higher prices for customers.
‘Direct competition between Sprint and T-Mobile has led to lower prices, higher quality service, and more features for consumers. If consummated, the merger will eliminate the competition between Sprint and T-Mobile,’ said the states in their complaint.
Leticia James, New York’s attorney general, claims that T-Mobile’s union with Sprint would limit low-income consumers’ access to wireless service.
‘The T-Mobile and Sprint merger would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans, but would particularly affect lower-income and minority communities here in New York and in urban areas across the country,’ said James.
Lawsuit conflicts with FCC chair's support of Sprint/T-Mobile merger
The antitrust lawsuit comes just weeks after US Federal Communications Commission (FCC) chair, Ajit Pai, recommended that his agency approve the merger of the phone companies.
'Two of the FCC’s top priorities are closing the digital divide in rural America and advancing United States leadership in 5G, the next generation of wireless connectivity. The commitments made today by T-Mobile and Sprint would substantially advance each of these critical objectives,’ said Pai.
While the US attorneys general think that the Sprint/T-Mobile merger will lead to increased prices, Roger Entner, founder of telecommunications research firm Recon Analytics, doesn’t think that the union of the two corporations would greatly impact prices for customers.
‘I don't think it will make a significant difference in prices going forward,’ said Entner.
In addition to the FCC, the US Justice Department has to approve the Sprint/T-Mobile deal before it’s finalised.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
