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June 5, 2018

DOJ Antitrust Chief likely won’t block the T-Mobile and Sprint merger

by John_A

It looks like the merger may happen after all.

The Sprint and T-Mobile merger is expected to be completed by mid-2019, but before that happens, it needs to get approval from the proper government officials/agencies. We still have a ways to go, but at least according to the Antitrust Chief, the Department of Justice won’t give the merger much of a hassle.

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According to Bloomberg, DOJ Antitrust Chief Makan Delrahim says the T-Mobile and Sprint merger isn’t “a deal killer” even though the four main U.S. wireless service providers will go down to just three. Furthermore, Delrahim also noted that “I don’t think there’s any magical number that I’m smart enough to glean about any single market.”

What does this mean for the merger?

Although Delrahim doesn’t seem to be too concerned about the deal, Bloomberg does remind us that “the Justice Department still must weigh the potential impact of allowing a merger of T-Mobile and Sprint, the No. 3 and No. 4 players, against having two smaller players battle on price and features against giants like Verizon Communications Inc. and AT&T Inc.”

Investors are still skeptical about the merger being approved, some even going as far to say the odds are 50-50. It’s difficult to say for sure, but with Delrahim’s recent comment echoing a similar theme we’ve seen from FCC Chairman Ajit Pai, the possibility of this going through is looking greater and greater.

What do you think will happen?

The T-Mobile / Sprint merger could be great for consumers, but it probably won’t be

Carriers

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  • Join the Discussion

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