T-Mobile, Sprint Announce A Plan For Merger

The two companies — the third- and fourth-largest U.S. wireless carriers, respectively, behind Verizon and AT&T — have been trying to merge for years. But previous efforts have failed, often falling apart under intense regulatory scrutiny.

This deal still needs regulatory approval, from both the Justice Department, which will weigh antitrust concerns, and the Federal Communications Commission, which will consider whether the deal is in the public interest.

U.S. regulators have recently challenged AT&T’s $85 billion deal to purchase Time Warner Inc., Reuters notes, and “are expected to grill Sprint and T-Mobile on how they will price their combined wireless offerings.”

The companies say merging will allow them to lower prices and put more pressure on Verizon and AT&T.

“The new company will be able to light up a broad and deep 5G network faster than either company could separately,” the companies said in a press release.

In a video announcement, the CEOs of T-Mobile and Sprint emphasized the potential of 5G. They also described the merger as a job creator, and emphasized the competition in wireless — anticipating antitrust challenges to their plan to combine.

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