States Sue To Block Sprint T-Mobile Merger, Putting Deal In Jeopardy

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“This merger would hurt the most vulnerable Californians and result in a compressed market with fewer choices and higher prices,” said California Attorney General Xavier Becerra in a statement.

Meanwhile, Sprint and T-Mobile say they need to merge in order to compete with their bigger competitors: Verizon and AT&T. Especially when it comes to deploying 5G, Sprint and T-Mobile say they’re outmatched when it comes to resources.

The deal “will allow New T-Mobile to invest nearly $40 billion within three years of closing to deliver a more robust nationwide 5G network and next-generation services than either company can achieve on its own,” the companies said in aStill, even promising not to raise prices for three years and to deploy an expansive 5G network in rural areas isn’t enough to abate the concerns of the attorneys general.

“While T-Mobile and Sprint have made promises that their merger would offer lightning-fast speeds and increased capacity, the Attorneys General’s investigation found that many of the claimed benefits were unverifiable and could only be delivered years into the future, if ever,” the statement announcing the lawsuit reads.The deal still has to be approved by the Justice Department.

 

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