in favor of T-Mobile's proposed $26 billion merger with Sprint, clearing the deal's final hurdle and allowing the long-running saga to head toward a conclusion — one that will fundamentally rebalance the axes of power in the US mobile telecommunications space.
Federal judge Victor Marrero of the US District Court in Manhattan ruled today that the merger would not substantially lessen competition and harm consumer choice in the wireless market, rejecting arguments from a group of state attorneys general looking to block the merger. This ruling paves the way for the third- and fourth-largest wireless network operators in the US to merge into a combined company — to be known as New T-Mobile — that will rival market leaders Verizon and AT&T in both scale and resources.The formation of New T-Mobile comes amid a time of flux in the US wireless market in the early days of the 5G era, and it will have wide-ranging consequences for the US telecommunications space.
New T-Mobile could instigate a fierce price war among competitors Verizon and AT&T. T-Mobile and Sprint are well-known for offering lower prices than their competitors, but they did so at a cost as both lagged behind rivals in terms of service quality and coverage. Even so, the merged company will be able to leverage both companies' resources to improve service quality and coverage, while still keeping prices low.
The incumbents will likely double down on consumer-friendly media services to better compete with New T-Mobile. In addition to offering lower prices, the potential merger of T-Mobile's and Sprint's media offerings could present additional cost savings for customers. T-Mobile offers free subscriptions to Netflix and discounted access to TVision , while Sprint offers free subscriptions to Hulu and Hatch.
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