T-Mobile Closes Merger With Sprint, and a Wireless Giant Is Born

The suit was brought in June after regulators at the Justice Department and the Federal Communications Commission approved the merger plan. The states argued that the combination of T-Mobile and Sprint would reduce competition, lead to higher cellphone bills and place a financial burden on lower-income customers.

Letitia James, the New York attorney general, a key plaintiff in the case, had argued that the merger would cost subscribers at least $4.5 billion annually. She called the February ruling in favor of the deal “a loss for every American who relies on their cellphone for work, to care for a family member and to communicate with friends.”

With the completion of the merger, the number of major carriers in the United States stands at three — for now. To obtain regulatory approval, T-Mobile and Sprint agreed to sell off certain assets, including Sprint’s prepaid wireless business, to the satellite TV service Dish. The pay-TV operator hopes to become a new fourth carrier, in place of Sprint.

The fight for customers among the major carriers has driven subscription prices downward. The average monthly wireless bill has fallen by over 25 percent in the past decade, according to data from the Bureau of Labor Statistics. Wireless carriers still enjoy fat profits, but they have flattened or declined in recent years.

The T-Mobile deal technically faces one more hurdle. The California Public Utilities Commission, which governs telecommunications services in the state, has yet to sign off on the merger.

The companies closed the deal Wednesday after Sprint made a clever technical maneuver. The company withdrew its application to the California agency after changing how it delivered voice calls. Last week, the carrier switched to an internet-based system for phone calls, meaning Sprint no longer makes use of landlines. That effectively nullified the commission’s authority over the deal, according to the company.

Article source: https://www.nytimes.com/2020/04/01/business/media/tmobile-closes-sprint-merger.html