1 Big Reason T-Mobile/Sprint Will Be Good for Consumers
It appears a huge hurdle blocking T-Mobile (NASDAQ: TMUS) from taking over Sprint (NYSE: S) has been removed. The Justice Department late last week signed off on the deal after T-Mobile agreed to sell Sprint's pre-paid wireless business to DISH Network, which will eventually create a fourth national wireless carrier.
T-Mobile and Sprint must still resolve a lawsuit filed in June by 13 states and the District of Columbia to stop the merger. But representatives for several states say they are now reconsidering their involvement based on the news of a federal deal and its agreed-upon changes. T-Mobile says it's confident a settlement can be reached.
Federal regulators have long stood in the way of the merger, believing that four competitors shrinking to three would be bad for consumers. That has always been faulty logic, however, since none of the big four carriers ever offered the lowest price. The cheapest monthly plans always came from second-tier carriers leasing network space from the larger carriers.
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