The effect of the Sprint + T-Mobile merger on MVNOs will soon be discovered
The Justice Department is questioning smaller brands right now.
It’s clear that the T-Mobile and Sprint merger will have a huge impact on the wireless space in the U.S., meaning that every nook and cranny needs to be checked before the deal can go through. As part of the latest step in this process, the Justice Department is now reportedly asking smaller MVNOs about how the merger will impact them.
According to Reuters, the Justice Department is specifically interested in whether or not the merger will affect prices of MVNOs that purchase network access from T-Mobile and Sprint.
It’s noted that:
The Justice Department, which is evaluating T-Mobile’s $26 billion deal to buy Sprint, has been speaking with small wireless operators that buy access to the major wireless networks at wholesale rates, and is seeking their opinions about the merger, the people said, who declined to be named because the talks are confidential.
How are these smaller MVNOs responding? So far, it’s a mixed bag.
David Glickman of Mint Mobile and Ultra Mobile was told the Justice Department wanted to talk with him, but “said he was not given additional details about what the department wanted to discuss.”
On the other hand, Boost Mobile founder Peter Adderton has previously stated that “A merger between T-Mobile and Sprint without any concessions would be bad for consumers.”
Earlier this week, the Antitrust Chief with the DOJ commented that the U.S. going from four to three major network operators as a result of the merger wouldn’t be a dealbreaker.
The T-Mobile / Sprint merger could be great for consumers, but it probably won’t be
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