The T-Mobile and Sprint merger got the final green light from the Federal Communications Commission (FCC) this past week. The $26 billion acquisition by T-Mobile has faced challenges by consumer advocacy groups and state attorneys. Several states have moved to block the merger.
Should the merger survive the attempted roadblock, it could transform the wireless landscape in the U.S. T-Mobile and Sprint are the country’s third and fourth-largest wireless carriers, respectively. They’ve joined the front in putting an end to early termination fees and offering unlimited data plans for its consumers.
The union could help accelerate and expand the rise of the 5G network.
FCC Chairman Ajit Pai said, “The transaction will help secure United States leadership in 5G, close the digital divide in rural America, and enhance competition in the broadband market.”
The merger has its skeptics. FCC Commissioner Jessica Rosenworcel pointed out that the union could end “a golden age in wireless.” Other sources said the cost of wireless services are likely to see a hike once the merger is complete. This is bad news for lower-income Americans.
T-Mobile had to make concessions to receive approval from the FCC. The company promised regulators to spin off Boost Mobile, Sprint’s prepaid subsidiary. T-Mobile also said it would expand high-speed internet in areas of the country that were underserviced.
The court case involving the multi-state opposition and advocacy groups takes place next month.