Rift emerges between federal agencies reviewing the Sprint and T-Mobile merger

Sprint Corp. and T-Mobile are seeking permission to merge. By Tony Romm Tony Romm Staff writer covering technology policy Email Bio Follow May 21 at 12:19 PM A merger between T-Mobile and Sprint, the nation’s third- and fourth-largest wireless carriers, entered uncertain legal territory this week, after the two federal agencies reviewing the $26 billion deal appeared to split in their thinking about the transaction.

Officials in the antitrust division, led by Makan Delrahim, remain skeptical that allowing the number of top wireless carriers to drop from four to three will help consumers, who now benefit from the pressure these rivals exert on each other to improve their prices and service offerings, the person said. The source asked not to be identified because the proceedings are private.

In his comments, Pai stressed that the deal would benefit consumers. “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," he said in a statement. “The commitments made today by T-Mobile and Sprint would substantially advance each of these critical objectives.

In an attempt to ameliorate critics, Sprint and T-Mobile announced on Monday a series of concessions. They include a commitment to build out 5G wireless to 97 percent of the country in three years, including much of rural America, while offering “same or better rate plans at the same or better prices” for the next three years. They also pledged to divest Sprint’s pre-paid phone business, called Boost Mobile, to a third party following the deal’s approval.

Pai, the agency’s chairman, warned that the companies would face “suffer serious consequences” if they broke their promises, including “payments to the U.S. Treasury of billions of dollars.” But Democratic Commissioner Jessica Rosenworcel appeared unconvinced, tweeting Monday she has “serious doubts” about further consolidation in the wireless industry.Experts said this week they could not remember a time when the FCC gave a telecom merger a green light, yet the DOJ sought to block it in court.

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