Texas joins other states in lawsuit to halt T-Mobile-Sprint deal
Category: #headline  By Akshay Kedari  Date: 2019-08-03
  • share
  • Twitter
  • Facebook
  • LinkedIn

Texas joins other states in lawsuit to halt T-Mobile-Sprint deal

The state is suing T-Mobile’s $26.5 billion takeover of rival cellphone company Sprint.

Texas has recently joined nearly a dozen American states that is filing a motion to stop T-Mobile’s acquisition of rival telecommunication firm Sprint for $26.5 billion, arguing that the contract is bad for consumers because it would create monopoly in the market due to fewer competition.

Five Republican state attorneys general and the Justice Department accepted the deal a week ago. The attorneys general were not a part of the states’ case. The government’s condition would make Dish, a satellite-TV company, the new wireless provider.

Reportedly, critics fear that the deal would lead to fewer consumer perks and higher prices because Dish would still be a weaker competitor. Reportedly, Dish needs to build a network that starts with 9 million customers, about one-sixth of Sprint’s current subscriber base.

According to a federal judge, the trial would begin in December, due to the states’ plea. Meanwhile, T-Mobile has decided to hold its Sprint takeover until the litigation is over. Reportedly, T-Mobile has decided to close the deal by the end of 2019.

Whereas the Justice Department recently said that Dish has agreed to build a next generation 5G network that would cover entire nation by the end of June 2023, making it a disruptive force in wireless player.

According to reliable sources, Dish to get its business running in wireless is willing to pay $5 billion for Sprint’s prepaid mobile brands, including Virgin Mobile and Boost. Additionally, the company will be able to lease T-Mobile’s network for the next seven years while it develops its own.

However, public-interest advocates and attorneys general from different states claim that Dish is hardly an alternate company for Sprint and that these conditions fail to discuss the competitive threats this deal causes, like job losses, higher prices and fewer choices for consumers.

Source Credit: https://www.usatoday.com/story/money/2019/08/01/t-mobile-sprint-deal-and-lawsuit-texas-joins-states-suing-merger/1895095001/

 

About Author

Akshay Kedari    

Akshay Kedari

Akshay holds a Bachelor’s degree in computer engineering. Despite having a penchant for software development and the like, Akshay took to writing as a career owing to his passion for the field. Presently, Akshay writes articles for itresearchbrief.com and a few oth...

Read More>>

More News By Akshay Kedari

CoreMap Announces Completion of $10.5 Million Series A Financing
CoreMap Announces Completion of $10.5 Million Series A Financing
By Akshay Kedari

CoreMap announced that it has accomplished $10.5 million Series A financing which was led by Qure Ve...

Spain to conduct first trial of Johnson & Johnson’s COVID-19 vaccine
Spain to conduct first trial of Johnson & Johnson’s COVID-19 vaccine
By Akshay Kedari

According to reliable sources, Spain is planning to host the phase 2 clinical trials of the US-based...

Fulcrum Biometrics acquires DelaneyBiometrics, adds European footprint
Fulcrum Biometrics acquires DelaneyBiometrics, adds European footprint
By Akshay Kedari

Fulcrum Biometrics, Inc. has announced a strategic acquisition of Delaney Secure Ltd., a UK-based bi...