It’s been a year since US carriers T-Mobile and Sprint agreed to a merger but the merger is yet to pull through. The announcement clocked one year on April 29 but the deal is reportedly still facing several hurdles in the U.S. Earlier on, there were reports that the merger’s approval by the US authority may be hinged on the two parent companies Deutsche Telekom AG (T-Mobile’s parent company) and SoftBank Group Corp (Sprint’s parent company) ditching Huawei’s technology globally. While that may have been agreed upon, there were later reports that the deal may still get blocked by some US states.
Reuters reports that T-Mobile has filed an extension with the US Securities and Exchange Commission to a new July 29 deadline for the merger. The deal is presently being reviewed by the US Antitrust Division which is reviewing an argument made by T-Mobile and Sprint, one that says the two merged companies will be able to roll out a “better” and “faster” 5G network in a timelier manner. This seems to be the last stretch of the entire process. Both telecoms giants have put in a lot of efforts to prove that the US government that the merger is a good idea. The company has also countered arguments against the merger, basically centred on fears that the merger will cut thousands of jobs when Sprint stores have to close, and that the merger would inevitably raise the carrier’s prices. T-Mobile has given its word that it will keep rates the same for a certain time after the merger but that isn’t enough for the opposing group.
Read Also: T-Mobile and Sprint merger deal approval reportedly hinged on ditching Huawei’s technology
T-Mobile initially offered $26.5 billion to acquire Sprint and all its market presence. This would make the company a major challenger to AT&T and Verizon’s dominance in the United States. The deal will potentially see the new conglomerate controlling over 30% of the US wireless market, with an even higher share in some states. For now, there is still no certainty that the deal would sail through.
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