The T-Mobile/Sprint merger may run into opposition from the DOJ
For the last month or so, rumors have been ramping up surrounding a possible merger between T-Mobile and Sprint. It seems that the two carriers are so close to making this thing finally work, that we are likely to see some type of announcement made this month, but a big roadblock may stop all of the progress in its tracks.
“Losing that head-to-head competition could drive up prices for those on a more limited income,”
Gene Kimmelman, president of Public Knowledge
A new report from Reuters states that the US Department of Justice is likely to block the merger on the grounds of being “anticompetitive”. The main cause for concern is that the merger will drive prices up, although those with limited credit options look to T-Mobile and Sprint for their mobile network needs.
It also seems that the “antitrust” staff will want to let T-Mobile continue working its magic against Verizon and AT&T as the rising carrier continues to entice customers to switch. Meanwhile, Sprint is just left off to the side almost wandering aimlessly as it continues to try just about everything to bring customers to a subpar network.
According to the report, a merger with Sprint would give T-Mobile an estimated 129 million subscribers, which would still put Big Magenta in third place behind Verizon’s 146 million subscribers, and AT&T’s 135 million subscribers. Nonetheless, it would be interesting to see exactly what T-Mobile would bring out of the woodworks were a merger with Sprint to actually come to fruition.
Let us know what you think about the possible merger, and if the DOJ should stay out of the way this time around.