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FCC will take extra time to review T-Mobile, Sprint merger

By midian182 · 5 replies
Sep 12, 2018
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  1. Following years of on-and-off talks between the two wireless carriers, the pair announced an all-stock $26 billion merger back in April. The companies had tried to merge twice in the past, but regulators and internal disagreements prevented it from happening.

    The third- and fourth-largest wireless US service providers submitted their Public Interest Statement to the FCC in June, but the commission has now said it is pausing the informal 180-day "transaction shot clock," which is currently at day 56, following recent submissions related to a revised network engineering model. The FCC called it "significantly larger and more complex than the engineering submissions already in the record." It also needs to review a new business model referred to as “Build 9.” Both submissions were received on September 5.

    “Considering the complexity and potential importance of these newly-provided and expected models, it is appropriate to stop the informal 180-day clock to allow time for their review,” writes David Lawrence, the director of the T-Mobile / Sprint Transaction Task Force, and Donald Stockdale, the chief of Wireless Telecommunication Bureau. "The clock will remain stopped until the Applicants have completed the record on which they intend to rely and a reasonable period of time has passed for.staff and third-party review."

    The carriers want to merge and form one larger company that can compete against Verizon and AT&T, which are both bigger than T-Mobile and Sprint. The pair claim that the move will benefit the public by, among other things, increasing the rollout speed of their 5G networks.

    In a statement to Engadget, T-Mobile and Sprint said they looked forward to working with the FCC as it reviews the merger.

    We appreciate that the FCC is taking the time necessary to fully understand the merits of the T-Mobile and Sprint merger. The additional review time is common to FCC merger reviews and we recently supplied a large amount of data to the FCC that they want sufficient time to assess. We are confident that this transaction is pro-competitive, good for the country and good for American consumers, and we look forward to continuing to work with the FCC as they evaluate our plans.

    Permalink to story.

     
  2. Reachable

    Reachable TS Maniac Posts: 292   +140

    "pro-competitive, good for the country and good for American consumers"

    Yeah, right. If the system had any integrity the merger would have been summarily dismissed.
     
  3. OutlawCecil

    OutlawCecil TS Guru Posts: 512   +366

    People are so ill informed on this merger. The real details: FACT1: Sprint is falling behind and is headed toward bankruptcy anyways which won't help anybody. FACT2: Sprint and T-mobile are the two smallest phone companies and combined, they'd be a little over 3/4 the size of AT&T and Verizon. Stop making it sound like they will be gigantic. AT&T is gigantic and this merger would bring them nowhere near that size.
     
  4. treetops

    treetops TS Evangelist Posts: 2,244   +347

    The top 4 wireless telecommunications facilities-based service providers by subscriber count in the United States are:

    Verizon Wireless: 152.7 million (Q2 2018)
    AT&T Mobility: 147.3 million (Q2 2018)
    T-Mobile US: 75.6 million (Q2 2018)
    Sprint Corporation: 53.7 million (Q2 2018)

    Which would make them a little over 5/6 the size of AT&T. No they are not the smallest phone companies and this merger would bring them pretty close to the size of AT&T and Verizon.
     
  5. Reachable

    Reachable TS Maniac Posts: 292   +140

    Poor widduw companies! They need to merge so they can fight big bad biggies.

    Booth T-Mobile and Sprint are huge and have the resources to do anything Verizon and AT&T can. The general use of the argument "Even if we merge we'll only be as big as our biggest competitor" is sophistry. It's been used too often and only results in shrinking an already small field of competition.
     
  6. OutlawCecil

    OutlawCecil TS Guru Posts: 512   +366

    I don't understand. You disagreed with me but stated (in more detail) the same facts I did.

    You listed the 4 big companies, T-Mobile and Sprint are indeed the lowest two. Then you mentioned a merger would wind up making T-Mobile "pretty close" but still smaller...18 million less than AT&T! Soooo where was I wrong and what would be the problem with this merger???
     

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