FCC Votes to Approve T-Mobile and Sprint Merger

BY Mahit Huilgol

Published 16 Oct 2019

Months ago the Justice Department had given the green signal for T-Mobile and Sprint merger deal. According to The Verge, the FCC has approved the merger between T-Mobile and Sprint. The deal was crucial for Sprint which was reporting losses from the past three quarters. Once the merger is done, the U.S market will have only three wireless carriers.

As expected some are opposing the deal. Earlier this year, Ajit Pai, FCC Chairman voted to approve the merger in a hipe that it would help rollout 5G faster. The merger faced opposition from Democrats. Jessica Rosenworcel, Democratic Commissioner disapproved of the merger. She argued that a merger will hurt consumers while the prices will skyrocket and competition will shrink.

The T-Mobile–Sprint merger will end a golden age in wireless that helped bring to market lower prices and more innovative services. It will mean an end to the competitive rivalry that reduced consumer rates by 28 percent during the past decade. Similarly, the pressure to support unlimited-data plans and free international roaming will fade. Offers by carriers to pay early-termination fees to help families switch to plans that fit their lives will fall by the wayside. And the network improvements that will bring us the next generation of wireless service, known as 5G, will proceed more slowly and yield fewer jobs without the fuel of competitive pressure.- Jessica Rosenworcel

Our Take

Those opposing the merger also believe that it will cause job losses. However, Sprint was already struggling and had laid off nearly 35% of its total workforce since 2010. Meanwhile, T-Mobile has promised that it will not increase the prices in the next three years and promised to deploy a 5G network across the U.S in 6 years. Furthermore, the carrier has also agreed to offload some assets and aid Dish Network to replace Sprint.

[via TheVerge, The Atlantic]