Mobile's first 'New T-Mobile' un-carrier event is this Thursday

Ruben Fields
November 6, 2019

The U.S. Federal Communications Commission on Tuesday released its October 16 order allowing T-Mobile to merge with Sprint in a $26.5 billion deal.

"The Commission found that the transaction will help close the digital divide and advance United States leadership in 5G, the next generation of wireless connectivity".

Backers of the deal say combining T-Mobile and Sprint will create a strong number three U.S. wireless carrier behind Verizon and AT&T, with the resources to invest in 5G, or fifth-generation networks. "This commitment includes deploying 5G service to cover 85% of rural Americans within three years and 90% of rural Americans within six years". 99% of would be able to connect to signals offering download data speeds of 50Mbps or higher (90% of rural Americans).

The companies have said they would not finalize the deal until an antitrust challenge from more than a dozen USA states is resolved.

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In order to get approval from the FCC, T-Mobile and Sprint had to agree to quite a few conditions.

The FCC found that the merger, under the above conditions, will not hurt wireless competition in the USA and "would enhance competition in rural America and among quality-conscious consumers along with strengthening competition in the home broadband and enterprise markets". "It will mean an end to the competitive rivalry that reduced prices by 28 percent during the last decade". This paves the way for the merger to be finalized as the DOJ has already approved of the merger.

However, the merger between two of America's top four carriers still isn't done, since multiple state attorneys general argue in a lawsuit that the deal would hurt competition in the industry. The deal, which will close following the closing of the T-Mobile-Sprint merger, will make Dish the "fourth nationwide facilities-based network competitor" replacing Sprint. That deal is worth about $5 billion.

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