DOJ reportedly leaning against approving T-Mobile and Sprint’s merger

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After getting some good news regarding its merger with Sprint from the FCC this morning, there’s now some not-so-great news for T-Mobile.

The Department of Justice is leaning against approving the T-Mobile-Sprint merger, according to a report from Bloomberg. It’s said that DOJ has antitrust concerns about the deal and T-Mo and Sprint haven’t done enough to resolve those concerns so far.

This news comes hours after FCC Chairman Ajit Pai publicly pledged his support for T-Mobile and Sprint’s merger. “In light of the significant commitments made by T-Mobile and Sprint as well as the facts in the record to date, I believe that this transaction is in the public interest and intend to recommend to my colleagues that the FCC approve it,” Pai said.

T-Mobile and Sprint confirmed today that they were making commitments to the FCC if its merger closes. Those include promises of mobile 5G and in-home broadband rollouts, including in rural parts of America, and a pledge to offer the same or better rate plans at the same or better prices for three years, including 5G. T-Mo and Sprint will also sell the prepaid brand Boost Mobile if their merger is completed and give the buyer a six-year wholesale MVNO agreement.

While the DOJ hasn’t officially come out against the T-Mobile-Sprint merger yet, today’s report does put a damper on the news of FCC Chairman Pai’s support. Now we wait to see if T-Mo and Sprint can sway the DOJ or if the Justice Department will officially come out against the deal.

Source: Bloomberg

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  • Robert Roll

    politics at play if it falls thru why not T-Mobile just buy Sprints 2.5Ghz Licenses (Band 41) and lease back to them what they need and T-Mobile use the rest that way if sprint does fail it will prevent AT&T and Verizon from getting there hands on it assuming all they need is FCC approval for that transaction.

    • disqus_7XunpanFgK

      Doesn’t work that way. Spectrum can only be licensed by the government.

      • Robert Roll

        the FCC issued the licenses to Sprint.. Sprint can file an application to transfer/sale those licenses to T-Mobile .. Carriers do this all the time look it up… T-Mobile bought all the Band 12 A Block Licenses (700Mhz) from Verizon is select markets

  • Gardo

    I hope they block this merger.

    • disqus_7XunpanFgK

      Why? So we can watch Sprint go bankrupt and we end up with 3 carriers anyway, 1 of which (T-Mobile) is at a significant disadvantage in terms of money and customer base. Verizon and ATT want the merger to fail, as they are vocal opponents of the merger. If Sprint/T-Mobile merge, they will be on equal footing with the other 2 and can force them to lower prices.

      So, don’t be a lemming and look into this merger with open eyes. If it fails, I guarantee you will be paying more than you are now when Sprint goes under!

      • Kevin

        Sprint won’t go bankrupted because Softbank owns the majority of Sprint and the bankers have money and they won’t let Sprint go bankrupted. If they sell Sprint at a lower price, somebody will buy it. I would prefer Softbank to sell Sprint to another player, so we can still have 4 nationwide wireless carriers. This would help consumers a lot.

        • disqus_7XunpanFgK

          Uhhh, yeah. I can tell you have done zip research on this. SoftBank has been trying to sell Sprint for a while. Only taker with enough capital was T-Mobile.
          If this deal fails, Sprint WILL go bankrupt. This is a foregone conclusion. The amount of debt they owe has been the main reason SoftBank wants to offload them; That, and Sprint makes zero profit.

        • Eric A

          Sprint’s not a nationwide carrier. It basically only serves metropolitan areas.

      • Deadeye37

        Totally agree. Sprint will go bankrupt, no one will buy Sprint outright because of the debt load, they’re going to fall way behind in the 5G race and will probably end up being broken down and sold for parts, which AT&T and Verizon will quickly jump on. If T-mobile buys Sprint, then they can be a legitimate contender and force more positive change between AT&T & Verizon instead of just being the noisy kid who is an annoyance at best.

      • riverhorse

        This is a perfect example of why the present abortion ban push is so dangerous. It prevents left-err lemming population self-culling, actually forces them to multiply and thus take over.

        • Francisco Peña

          WTH does the abortion laws have to carriers. Stop with the ignorance.

        • riverhorse

          All rudeness aside-
          Government stats: the higher the IQ and income the less offspring produced. {It’s quality over quantity, commitment to excellence precepts).
          Ergo it results in procreation of many more antif-business, pro-big gov’t, mandatory price control (which eventually triggers recession & depression), opposing viewpoints must be silenced, etc. adherents.
          Anti-merger opponents are basically shooting themselves ( and the rest of us) in the foot by contributing to less providers of advanced technology services (TMo and Sprint on their own cannot blanket the country with TVhome internet5G). They are attacking our friends, who have provided us the best pricing, and worse accusing them of planning to not provide good pricing in the future. Way to backstab a friend. Despite grandfathering provisions. No one has ever had their planprice taken away by TMo.
          Have a nice day.

  • Fan_Atl77

    Simply said, Why? The merger will benefit many, especially Rural communities that need sustain coverage across the board…

    • Neoprimal

      ATT was split up and almost everything ATT was split into has come back into ATT, this was allowed. ATT was allowed to buy DirecTV and WarnerMedia. Comcast was allowed to purchase ATT Broadband (competition) and then take in NBC and Sky. ATT made a LOT of promises it has broken but has not been penalized for (more jobs, cheaper plans, etc). It may be argued that the real reason this merger hasn’t been allowed is because T-Mobile and Sprint don’t have the lobbying power and deep pockets the big 2 companies have, also ATT and VZW don’t want this merger to happen. Normally I’d disagree with mergers like this but T-Mobile has been disruptive on behalf of customers. I truly believe that T-Mobile is the reason that ATT and VZW plans don’t cost much more than they do right now and unlimited data still exists. Sprint has been leaking customers. I don’t know how well they’re doing but I know that these companies would be stronger together. If T-Mo’s CEO can keep doing what he’s doing then it would do well.

      • Fan_Atl77

        Well Stated, Well Stated…

  • Android_God

    Thank God it’s not a black President!

    • Ver

      Care to explain Lucy?

    • Eric A

      It’s idiotic comments like yours that make these threads so entertaining

    • warpwiz

      Legere just needs to stay at Trump’s Washington DC hotel more often. Works for the Saudi’s and Russians.

      • Francisco Peña

        I guess Saudi Arabia giving to the Clinton Foundation when Hillary was Secretary of State doesn’t mean anything to you.

    • Fabian Cortez

      Thank God it’s not a black President!

      What is the relevance behind this, Android_God?

  • riverhorse

    Don’t worry kids. It’s a done deal. FCC and DOJ are not going to differ, especially given their present heads.
    A lot of news today falls under yellow journalism click bait build up sensationalism or the matchup even when improbable: the low probability dangerous or damaging option or opponent still has a chance.
    FYI I’m not referring to tmonews, but rather the actual sinners: the original creators of the questionable content.

  • riverhorse

    Google this competing headline:
    T-Mobile-Sprint merger expected to get ‘green light’ from DOJ, ex-FCC commissioner says

  • Bryck

    I’m sure T-Mobile will do whatever it takes to get this merger approved.

  • Michael Elkin

    The irony is that the only real Anti-trust concerns should be with with Verizon and ATT. They are the ones buying and hogging spectrum to make sure Tmobile and others cannot grow. Previously mentioned in previous Tmobile suits and complaints. This merger would give Tmobile more of the need spectrum to compete. Hopefully they won’t become greedy like the big boys.