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Sprint and T-Mobile merger approved by national security council

By Greg S · 6 replies
Dec 18, 2018
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  1. As Sprint and T-Mobile continue the lengthy process of attempting a merger, the Committee on Foreign Investment in the United States, Department of Justice, Department of Homeland Security, and the Department of Defense have all given their seal of approval.

    Collectively referred to as Team Telecom, the government body approval was given without any objections and withdrew a request to defer action on the proposed merger.

    Now that one major step forward in the process has been achieved, the deal will still be subject to FCC approval as well as other regulatory approvals. If no regulators object to the deal, it will close during the first half of 2019.

    Cybersecurity is at the forefront of reasons why the deal might be stopped in its tracks. Both Sprint and T-Mobile are owned by foreign businesses with close ties to Huawei. As the Chinese telecom business comes under further scrutiny, there is potential for objection on the grounds of security concerns.

    The United States is still awaiting the extradition of Huawei CFO. Even though not directly related to the merger, any increased tensions with Huawei and China could throw a wrench into the plans of Sprint and T-Mobile given that both are Huawei customers.

    Valued at $26.5 billion, the proposed merger would cause a shift in the market from two major carriers and two less competitive options into three moderately competitive wireless providers. As 5G networks start to take shape, a more unified landscape with three actual competitors could help promote a better customer experience.

    Permalink to story.

  2. Uncle Al

    Uncle Al TS Evangelist Posts: 5,393   +3,780

    "Four carriers may become three that actually can compete"
    The more accurate word is conspire & control which is exactly what I expect them to do .....
  3. netman

    netman TS Addict Posts: 322   +101

    "Both Sprint and T-Mobile are owned by foreign businesses with close ties to Huawei."

    WTF! Link to the "Close Ties to Huawei" please...
    xxLCxx and mbrowne5061 like this.
  4. OutlawCecil

    OutlawCecil TS Guru Posts: 679   +495

    And with their powers combined, they STILL aren't anywhere near the customer total of AT&T or Verizon. This is a good merger as it also likely saved Sprint from going bankrupt as they were clearly not keeping afloat.
  5. mbrowne5061

    mbrowne5061 TS Evangelist Posts: 1,209   +670

    Yeah, I think the author is confusing Huawei and SoftBank.
    xxLCxx likes this.
  6. MilwaukeeMike

    MilwaukeeMike TS Evangelist Posts: 3,160   +1,413

    I know... and people hear merger and they think it's going to result in this super powerful company that's going to control and conquer everything.

    A merger is more like getting new roommate that you don't know very well, but you agree to move in together because neither of you wants to pay all the rent. The first thing you realize is that there isn't room for both of your couches and all your dishes, and it isn't long before you're arguing over what to have on TV at night.

    Mergers are really hard - they often fail, and if anything, this'll help Verizon and ATT. It'll be a while before we know if Sprint/T-mo is better off.
    toooooot likes this.
  7. xxLCxx

    xxLCxx TS Addict Posts: 231   +153

    Germany here - and I have to agree 100%.
    I’m sorry, but T-Mobile is a German monopoly, backed illegally by the state whenever they need it (tailor made laws).
    I’m reading for the first time about those “close ties to Huawei”. Who told you this joke? In Germany, nobody’s ever heard about it.

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