U.S. judge expected to rule in favor of Sprint, T-Mobile merger: sources

- A U.S. district judge is expected to rule in favor of allowing Sprint and T-Mobile US to merge over the objections of a group of state attorneys general, according to two sources familiar with the matter.

Approval of the deal would be a high profile defeat for state attorneys general, led by New York and California, who had argued that a merger of the No. 3 and No. 4 U.S. wireless carriers would lead to higher prices, especially for customers who use prepaid plans popular with people with poorer credit.The companies had said the deal was needed to help them build out next generation of wireless, called 5G, and better compete with sector leaders Verizon Communications Inc and AT&T Inc.

Deutsche Telekom is keen to cut the price of the deal, arguing that Sprint’s fortunes have deteriorated since they inked their agreement, the sources added. While a group of states decided to fight the deal in court, the federal government approved it with conditions, a decision which remain in effect.

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