California AG Xavier Becerra will not appeal judge’s T-Mobile-Sprint merger ruling

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Following New York Attorney General Letitia James’ announcement that she won’t be appealing the judge’s decision to allow T-Mobile and Sprint’s merger to go forward, California’s AG has now made a similar announcement.

California Attorney General Xavier Becerra will not appeal the judge’s decision last month to reject the state AGs’ lawsuit against the T-Mobile-Sprint merger. Becerra announced today that the California Department of Justice has struck a deal with T-Mo and Sprint regarding their merger.

Here are the requirements that T-Mobile must meet as part of its settlement with California:

  • Make its low-cost T-Mobile Connect plans available in California for at least 5 years. These plans include 2GB of data for $15 per month and 5GB for $25.
  • T-Mobile customers can keep their T-Mobile plans held in February 2019 for a total of five years.
  • Project 10 Million, part of the New T-Mobile Un-carrier 1.0 move that will offer a free hotspot device and 100GB of free broadband internet per year for five years to 10 million low-income households. These households can also purchase select Wi-Fi tablets at cost.
  • All current T-Mobile and Sprint employees in California must receive an offer of “substantially similar employment” with New T-Mobile. Also, the number of New T-Mobile employees in California will be equal to or greater than the current number of T-Mobile and Sprint employees.
  • Open a new customer support center in Kingsburg, CA that will create approximately 1,000 new jobs.
  • Increase participation in employee Diversity and Inclusion program to 60% within 3 years.
  • Reimburse California and other states that participated in merger lawsuit for the costs of the investigation and litigation, up to a total of $15 million.

Becerra and James were the two state AGs leading the lawsuit against the T-Mobile-Sprint merger. The two announced their lawsuit to block the merger back in June 2019, arguing that the deal would “substanitally” lessen competition in wireless, that prices would be higher, and that there would be a “substantial loss” of retail jobs.

The trial began in December 2019 with 14 state attorneys general opposing the deal, including New York and California. Judge Victor Marrero ultimately rejected the states’ lawsuit, saying in his ruling that the merger is not likely to lessen competition and that Sprint “does not have a sustainable long-term competitive strategy.”

While T-Mobile and Sprint’s merger has cleared most of the hurdles on its way to completion, there are still a couple of things standing in its way. The California Public Utilities Commission is the final of 19 state PUCs that need to weigh in on the deal, and the CPUC has said that it won’t make a final decision until April 16th.

The merger is also facing a Tunney Act review for any possible antitrust concerns. It’s unclear when Judge Timothy Kelly, who is conducting the review, will reach a decision.

T-Mobile has said that its merger could close as soon as April 1st, but with Kelly being quiet about his ruling and the CPUC waiting until April 16th to make its decision, hitting that April 1st merger closure could be difficult.

Source: California Attorney General Xavier Becerra

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  • Bilesha Welton

    Aka someone got paid.

  • Trevnerdio

    Great, so can we get this stupid show on the road then? Damn.

  • Shaun Michalak

    The California Public Utilities Commission is the final of 19 state PUCs
    that need to weigh in on the deal, and the CPUC has said that it won’t make a final decision until April 16th.

    With that being said, if it was not for that, I bet that T-Mobile would have told California to bug off on the deal.. But, being smart, they do not want to take a chance at more problems by doing so.. So in my opinion, I think it is bunk, that T-Mobile is now having to pay the lawsuit fees for someone to sue them, and then lost.. I also think that it is crap that they have to open a new facility in California, and turn the other cheek, just to pacify these people, just to get it passed and not to hold it up any longer.. If not for this one thing, of the California PUC and T-Mobile needing their approval, I bet T-Mobile would never have agreed to those 2 things..

    If it was me, I would agree to it for now, then in 5 years when the contract is up, I would run like heck of of that state.. After all, California is the one state that is the most unstable, makes the worst decisions, etc of all of the other states.. It is like they are being run by a bunch of brainless idiots, so you never know what kind of laws and regulations that they are going to put into effect that the company is going have to deal with.. Think about it.. This is the same state that made it illegal for a person (semi driver) to live in California, and be their own independent contractor, and transport goods for other companies.. But if they move out of state, and come to California to do the work, then it is OK. This is the kind of crazy laws that they are passing..

    • Dominimmiv

      This is the state that has the 5th largest economy in the WORLD, has expanded Medicaid so all adults can get health coverage, has the most beautiful geography and is the entertainment capital of the world. Not to mention we can go swimming at the beach and then go snow skiing 2 hours later in the mountains…..Yeah we are confused ones….

      • Trevnerdio

        It’s a beautiful state. It’s just a shame it’s getting bent over without lube by the people that live there.

      • Shaun Michalak

        First, of course it is the 5th largest.. It is a large state, and has the highest average cost to live of pretty much any other state.. I have never been there, but I highly doubt that you can go there and buy a gallon of milk in most of the state, for under $1.50 a gallon.. the higher the cost of living the higher the economy is going to be..

        PS.. You say you have the highest.. Well, you also have the highest gas tax/price, almost the highest homeless rate, etc.. CA is the 4th highest in the country.. 4 times higher then my state, and about 10 times higher then Mississippi..

        Still, I am not talking about the average person, or landmarks.. I am talking about the people who run things, make the laws, etc.. Having a beach and skying has nothing to do with that.. and just as much as it doesn’t, it also means it will have absolutely no effect on a company like T-Mobile running a business..

        You say ” has expanded Medicaid so all adults can get health coverage”.. Well, lets think about that.. Medicaid is backed by federal tax dollars.. If “all adults” get it as you say, that means that includes illegal immigrants that may have never even worked a day in this country in their life.. So I am supposed to feel that it is a good accomplishment, that I am paying taxes, so that an illegal alien that never put even a penny into the system, and is was not even born here, can get a free ride?? Can you please explain to me how me, and all the other people out there that are making minimum wage, and barely able to pay their bills, should feel honored to pay more hour so that someone doing nothing can get a free ride?? Call me skeptical, but I doubt that the millions of people barely making their bills, if they are at all, will happen to agree with you, that it is a good thing.. just saying..

        PS.., “has the most beautiful geography”.. I will just say this.. Beauty is in the eye of the beholder..

        • Dominimmiv

          Yes we do pay higher taxes. Milk and gas cost more. Sure we have quite a few undocumented people. Some people have trouble with the high cost of living. Saying that no one is forced to live here. Ask the average person if they would trade where the live for the ice storms back east, the sub zero weather in the Dakota’s or the sweltering humidity in the south and you will get the same answer:
          Hell No!
          If the best place to live became as cheap as Mississippi then 100 million people would live here and that would be non-sustainable.

        • Bilesha Welton

          As someone originally from California (born and raised in Columbia) … yeah no, I don’t miss it. The Democrats royally screw everyone over on a daily basis and people just accept it like it’s the norm. Illegal immigrants everywhere (my family and I actually came here the right way, not by hopping a fence). They don’t care about the homeless. I was actually upset about living in the U.S. until I got out of California and realized that the rest of the country isn’t the same.

          So you can go ahead and brag about “5th largest economy” this and “entertainment capital” that. Hide behind the celebrity brainwashing movement that seems to be going down in Hollywood right now. Pray for your awful socialism that doesn’t work.

          The rest of the country (this legal immigrant included) will continue to fight to keep the rest of the country from turning into a polished dumpster fire like California.

        • Dominimmiv

          I am happy you found a place you love to live in.

        • Shaun Michalak

          “Yes we do pay higher taxes. Milk and gas cost more.”

          See, there is the point right there.. The higher the prices, the higher the economy.. How can you brag about having a high economy based on high prices.. If you have the same exact number of sales, with the same exact item, but the same price costs 10 times more, then the place with the 10 times higher prices is going to have 10 times higher of an economy.. Basically, while bragging about having a higher economy, you are in essence, also bragging that everything costs more..

          The house I live in I can buy for about $70k dollars.. That same exact house in California, would probably cost about $400k.. Think about that and then tell me, is California still so great??

        • Dominimmiv

          I get paid more so it is relative. I also don’t want to live where the average house is 70k; there is a reason for that (such as climate, people, politics, lack of outdoor activities, etc….)

          Yes I still think California is great. It is 6:39 pm and I am in Palm Springs and it is 70 degrees outside.

        • Shaun Michalak

          and NYC has the same type of pricing, but i do not see all that stuff there either.. So that “costs more” ideology does not mean much when one place has those thing, and one does not..Oh yea, same prices as you, but in the same climate as me too..

          Here, yes, it does get cold.. But we also live right on the lake, by rivers, so you have everything that goes with that.. Plus we got mountains, so there is your hiking and stuff.. We have skiing, boating, fishing, and more..

          As for “it is relative” comment.. One doughnut is still one doughnut.. Just because you put a $5 price tag on it instead of a $1 tag, does not make it better, or there to be more of them.. Justifying your higher price for the same thing does not make it better.

        • Dominimmiv

          I have never seen or paid $5 for a donut here in Cali. You seem to think everywhere in California is the same and everything costs more. There is a huge difference between San Diego, LA, San Francisco, Palm Springs, Sacramento, etc. Some places are more expensive (housing) than others. Like I said earlier if it is worth paying the additional taxes and higher cost of living than do it. It is for me.
          If it doesn’t work for you then live where you can afford.

        • Shaun Michalak

          OK, a bagel instead of a doughnut.. Either way, it was an example.. Fact is, you can not tell me that a place that charges thousands of dollars for rent on the cheap side, is going to have the same costs as a place where you can get an apartment for a few hundred.

  • Jay Holm

    These state AG’s need to back off, the DOJ has already approved it!!!

  • vrm

    The AGs sued t-mobile and lost ! And now t-mobile should pay the corrupt lawyers’ cost ? State sanctioned class action lawsuit aka ambulance chasing event ?

  • Gator5000e

    Bloomberg is reporting that an administrative law judge with the California Public Utilities Commission is recommending the CPUC approve the two wireless carriers’ merger at the meeting on April 16th.

  • Mister Thursday

    Finally! I can’t wait for T-Mobile to close this merger and start utilizing the new spectrum to make their network even better. Politics as usual….

  • BillBurnett

    This agreement reads like extortion by CA and the states that lost the lawsuit.

  • riverhorse

    Becerra means cow in English.

    • Bilesha Welton

      A female cow. But I believe you meant Spanish ;)

      • riverhorse

        Ha, ha. Is there a male cow,,,or female bull????
        Oh, wait- what would be the name for an LGBTQ cow?

      • riverhorse

        Or the name for an LGBTQ duck or butterfly?

  • KaminskiBrigade

    re: “…100GB of free broadband internet per year for five years to 10 million low-income households.”

    Mainly consumed by their kids on Youtube. Educational value? Not much…that’s reality. Very idealistic of the A.G. to think that the free access will be used for schoolwork and learning.
    However, 100GB/year = barely enough for standard-def 480p Youtube and mandatory Binge-ON. In fact, that allowance will likely be used up in the first month by Netflix, and then the kids will begin to whine for more data.