US Department of Justice likely to stop Sprint merger with T

Cornelia Mascio
Ottobre 13, 2017

Amid all of the recent rumors that a T-Mobile-Sprint merger is coming soon, many have wondered how regulators would react to such a deal. Today a report claims to have some details on that.

Career staff at the Justice Dept. charged with investigating the impact of a merger between Sprint (S +0.8%) and T-Mobile (TMUS -0.1%) are likely to recommend against it, sources tell Reuters.

Reuters, citing three sources familiar with the thinking of DOJ staff, reported that regulators would probably seek to maintain the presence of four large wireless carriers in the US market and oppose the combination of the third- and fourth-largest providers.

Although only a fraction of mergers are blocked by antitrust regulators - and the Federal Communications Commission recently deemed the USA mobile market "competitive" - critics warned that a combination of Sprint and T-Mobile could stifle competition and curb the significant price reductions seen in recent months.

DOJ staff reportedly hope T-Mobile will continue its aggressive efforts to lure customers away from market leaders Verizon and AT&T.

Nothing is official at this point, but this report is some good news for folks that'd prefer T-Mobile and Sprint stay separate.

With a CEO as outspoken as John Legere, and one who has always valued customer satisfaction and has loudly spoken against the other carriers old-fashioned ways, the chances for a merger could be in T-Mobiles favor.

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