It’s been quite a while since the talks of T-Mobile and Sprint merger began back in 2017. Earlier on Tuesday, Federal Trade Commission announced that it will approve the merger.
Despite the approval, it’ll be interesting to see how everything unfolds moving forward. Regulators were pretty divided on their opinions since the talks of merger began but ultimately FFC decided to approve the $26.5 billion merger given the commission believes it would advance 5G deployment in future. However, the companies will be required to comply with a number of conditions in the coming years.
In the request, the companies revealed that the merger will allow them to provide 5G services to 97 percent of their customers within next three years. Moreover, more than 90 percent of the companies’ subscribers will get 100Mbps connection by 2025. While FCC agreed on the conditions, it revealed that in case the companies fail to meet the goal, they will be facing a fine over $2 billion.
Talking about FCC’s decision to approve the merger, Democratic Commissioner Geoffrey Starks said, “While I hope for the sake of consumers that I am wrong, I fear that we will one day look back at this decision and recognize it as a moment that forever changed the U.S. wireless industry, and not for the better.”
He added, “While the parties promise their merger will accelerate the availability of some form of ‘5G’ for some Americans, history teaches us that the most likely effect of this merger will be higher prices and fewer options for all Americans.”