U.S. Justice Department said to be talking with MVNOs about T-Mobile-Sprint merger

tmobilesprintmerger

The U.S. Department of Justice is speaking to smaller wireless operators in the U.S. about the merger of T-Mobile and Sprint.

According to a report from Reuters, the Justice Department is talking with multiple MVNOs that buy access to major carriers’ networks and asking them their opinions on the T-Mobile-Sprint merger. David Glickman, CEO at Ultra Mobile and Mint Mobile, confirmed that the DoJ asked to talk to him about the merger but wasn’t given any other details.

Peter Adderton, founder and former CEO of Boost Mobile, said he was “encouraged” to learn that the Justice Department is asking smaller operators about their opinions on the T-Mobile-Sprint merger. Adderton previously said that if the merger is approved, T-Mobile should spin off Boost Mobile or MetroPCS. If it doesn’t, Adderton explained, it would give the new T-Mobile “the effect of being a monopoly or extreme dominance in the category.”

Some people have raised concerns that the T-Mobile and Sprint merger could cause problems for both smaller operators and their customers. “This level of market domination virtually always leads to rising prices, more onerous terms and conditions and lower service quality,” Adderton previously said of a combined T-Mobile-Sprint and the large share of the prepaid market that it would hold.

T-Mobile and Sprint’s merger needs regulatory approval before it can actually happen, and so it makes sense that the DoJ would be speaking with smaller operators for their opinions on the deal. Many smaller wireless providers use T-Mobile and Sprint’s networks for their service.

Source: Reuters

Tags: , , ,

  • (J²)

    If T-Mobile is allowed to acquire Sprint, all of Sprint’s current brands should be spun off. Currently, most of them are owned by Sprint (formerly just operating on Sprint’s network). I’m not concerned about there being a monopoly as I am about there being choices eliminated as a lot of these MNVO’s and carrier owned prepaid brands offer alternative plans and pricing that aren’t just offered as part of a promotion. There are still carriers who offer limited plans for talk, text and data. There are plans that allow you to have talk, text or data independently. There are also other miscellaneous prepaid perks that are offered by smaller prepaid carriers.

    So yes, I definitely believe everything apart from T-Mobile and a prepaid brand (MetroPC or Sprint if they choose) should be spun off and operated separately.

    It’s good to see DJJ reviewing these details and getting input. Clearly this proposal isn’t DOA, like previous M&A attempts over the years. The lack of immediate opposition and outcry lead me to believe this will be approved with a few exceptions.

    • Steven

      What do you mean “spun off”.

      • (J²)

        Take a guess…

        • Steven

          I ask you to elaborate because honestly, it sounds like you dont know what you’re talking about… And your response (or lack there of) just confirms. You sound like Kramer on Seinfeld talking about company writeoffs, but he has no idea what he’s talking about. Look it up.

        • (J²)

          Are you bored? Because I notice you tend to stir the pot a lot on this site.

          Boost Mobile and Virgin Mobile were once independently run, now they are both owned by Sprint. They need to be “spun off” and operate independently of Sprint in the likely event the merger is approved.

          Somehow the void in your personal life and/or the lack of knowledge on these topics equate to “you don’t know what you are talking about”. You’ve added nothing to the topic with your comment.

          Your response is completely off topic which confirms you know nothing regarding the matter and just want to argue with people online.

          Have a good evening sir…

        • SirStephenH

          Steven is one of this site’s resident trolls.

        • (J²)

          That explains a lot lol

        • Steven

          Hang on, whoa, not a Troll. I actually rarely post here, and most of the time its in passive agreement with articles or posts. I simply asked for clarification on “spun off” because it seemed used as a generic phrase without much depth of understanding. No trolling. Legitimate question. Let’s not be so sensitive when someone is simply trying to have a back and forth conversation. Not everyone’s intent on the internet is negative.

  • randian

    The big two are called a duopoly for a reason. I fail to see how requiring T-Mobile be broken up while AT&T gets to keep Cricket is anything but a gift to AT&T.

  • stuman19741974 .

    I have T-Mobile, but my buddy who is more budget-conscious is looking to move from AT&T to Sprint since they have this $15 unlimited plan starting today. I’d never use Sprint, but if he moved to them and then the merger actually goes through, do you think T-Mobile will still continue to honor that $15 unlimited plan as-is?

    • steveb944

      They’ll likely be grandfathered.

  • Tony Chen

    hope doj rejects merger we dont need sprint.