Texas reaches settlement with T-Mobile, withdraws from merger lawsuit


Texas is the latest state to withdraw from the lawsuit against T-Mobile and Sprint’s merger.

Attorney General Ken Paxton announced today that he’s reached a settlement with T-Mobile that’s focused on pricing, 5G, and jobs. The agreement includes the following requirements for the New T-Mobile:

  • Give all Texas customers access to the same or better unlimited talk, text, and data rate plans as those offered by T-Mobile as of the date of the agreement for the next five years
  • Give all Texas customers access to T-Mobile limited data rate plans at a cost far below what is currently offered in the industry
  • Commit to provide 5G wireless broadband coverage to areas where most Texans live, including most Texans living in rural portions of the state within the next three years and to expand that 5G coverage dramatically within the next six years
  • Offer Texas residents that are currently employed by Sprint and T-Mobile substantially similar employment with the New T-Mobile

When he originally joined the lawsuit against T-Mobile and Sprint’s merger, Paxton said that he did not “anticipate that the proposed new entrant will replace the competitive role of Sprint anytime soon” and that the deal T-Mobile and Sprint struck with the Department of Justice “is not in the best interest of working Texans”.

Fast-forward nearly four months and here’s what Paxton has to say about his office’s settlement with T-Mobile:

“My office is responsible for protecting consumers and this settlement ensures that the New T-Mobile is not in a position to overcharge Texans for wireless service, and at the same time, obligates the New T-Mobile to invest in a high-quality 5G network that will serve the needs of Texas’ growing economy, or face stiff financial penalties. Our objectives in joining the initial lawsuit were to protect Texans from unnecessary price hikes and to ensure that Texans living in both urban and rural areas will not get stuck with substandard service as the market for wireless telecommunication services evolves to adopt new standards of technology with the power to transform the Texas economy. This agreement achieves those objectives.”

Now that Texas has flipped sides, the lawsuit against T-Mobile and Sprint’s merger includes 14 states and Washington D.C. New York Attorney General Letitia James is one of the AGs leading the lawsuit, and last week she said that T-Mo’s recent commitments don’t address the antitrust concerns that she and the other state AGs have with the merger. The trial for that lawsuit will begin on December 9th.

Source: Texas Attorney General Ken Paxton

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  • Bhagat

    Nevada will settle by end of the day today

    • Website Administrator

      Source?? That would be great.

      • SparklingCyanide

        actually he’s right, Nevada just announced they’re dropping out tonight also.

  • mreveryphone

    Now what about Verhizon and At&trash who charge line access fees and fake 5ge fees and other misc fees that have nothing to do with service? Smh… These states fighting the company or they are already getting kickbacks from those companies…

  • NardVa

    The shake down by these states is unreal. So the same states that are shaking down T-Mobile for discounted service in their state have no issues with Verizon and AT&T raping their constituents.

    • Shaun Michalak

      What I find ironic is that they are accusing T-Mobile, which is the one that has actually lowered rates, of doing what AT&T and Verizon currently do.. Verizon is charging $10 more for 5G.. AT&T still has towers that they refuse to upgrade from 3G or older.. Yet all of T-Mobiles towers are all at least 4G.. Plus, T-Mobile has said that they are not going to charge anything more for 5G either.

  • riverhorse

    Much ado about nothing, peacock feather display, future election posturin … Tmo was voluntarily going to do practically all that anyhow.
    Total opposite of Dale Carnegie on winning friends and influencing…

    • Shaun Michalak

      I was thinking the same thing.. They gained nothing, but are trying to make it sound like they accomplished something.. They are probably doing that to save face before the hearing and they just lose all together.. Because, by that time, they can not even try to take credit for any of anything good that they do get by then..

      I think what really made me laugh was this statement.. “to protect Texans from unnecessary price hikes and to ensure that Texans living in both urban and rural areas will not get stuck with substandard service”.. Ironic that T-Mobile has 4G VoLTE on all of their towers, yet AT&T still has a lot of towers that only have 3g at best on them.. And Verizon is the one that is charging $10 more for 5G speeds.. So they are basically talking about AT&T and Verizon here, not T-Mobile..

  • Shaun Michalak

    I can see most of these AG’s making agreements with T-Mobile over the next week or two.. Just think, if they do not, and then lose the lawsuit, then what are they going to have to brag about.. Nothing.. It will just make them look bad.. But if they switch sides before that, they can at least “try” to save face, and make it look like they accomplished something if they lose the lawsuit (which they most likely will). Plus, if they do lose, and still get the stuff anyways, there is no way for them to take credit too. In the end, I would bet that NY’s AG is the main, or only one that still is pushing it to court before the hearing gets here in 2 weeks.

  • Shaun Michalak

    Nope, it is a 3g.. g for gonna think about getting that info for you.. Kind of like the the engine that could.. I think I can.. I think I can.. lol