T-Mobile and Sprint merger maynot happen; US Justice Depart opposes

TMobile Sprint Merger

Given the fact of the news related to the merger of Sprint and T-Mobile, the same has not completely gone well with the U.S. Justice. Hence, there is still a possibility of the merger not happening as one of the staff has recommended on the same.

The  U.S. Department of Justice staff is of the opinion to stop the merger between T-Mobile and Sprint. Three people who told Reuters that are familiar with the staff’s thinking. It is of the opinion that the merger might hurt the customers.

As per the records of T-Mobile, had the customers from other carriers being pulled towards it and hence, due to the merger, the competition would turn out to be between three instead of four. T-Mobile is supposed to have attracted customers from carriers like Verizon, AT&T.

The CEO, John Legere, has been open against the decision of the ways the carriers follow as he felt that they were ‘old-fashioned’.

On the other hand, Antitrust staff will want to let T-Mobile continue as it has done, aggressively wooing customers away from market leaders Verizon Communications Inc (VZ.N) and AT&T Inc (T.N), the people said.

It is also viewed that The President of United States of America has to decided about the agreed to the merger or decline the same. Also, a major effect would be from Makan Dalrahim, and the FCC (Federal Communications Commission) in deciding so.

However, amongst all these, T-Mobile and Sprint have been said to be discussing final negotiations this month and announce their merger at the end of October during their Q3 earnings call.

Gene Kimmelman, president of Public Knowledge, a consumer advocacy group said, “Losing that head-to-head competition could drive up prices for those on a more limited income.”

Japan’s SoftBank Group Corp controls Sprint. When asked about the deal,  rejected talks to acquire T-Mobile for Sprint in the face of opposition from U.S. antitrust regulators.

Daniel Bitton, an antitrust attorney with Axinn, Veltrop and Harkrider said “Chances are better now, meaningfully better.”

It should be noted that, wireless telephone services prices fell a stunning 13.2 percent between  August 2016 and August 2017, according to the U.S. Bureau of Labor Statistics.

Hence, the wait after all the so-called non-favor aspect is to expect the merger to take place, even though the rest is in the hands of the U.S. Dept. of Justice.