Though the impending T-Mobile/Sprint merger was initially met with plenty of opposition, most of the deal's significant opposition has evaporated over time. The FTC, FCC, and US Justice Department have all given the green light to the two companies, which has allowed the $26.5 billion deal to proceed.
However, there are still a few pockets of resistance throughout the US, for better or worse. So far, that resistance has taken the form of various state lawsuits leveled against the companies, which are part of a broader attempt to prevent the merger from reaching its conclusion. Over the past several months, though, these lawsuits have slowly been rescinded or otherwise settled, and Texas is the latest state to drop its legal action against the merger.
"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..."
Texas Attorney General Ken Paxton today announced that his office has reached a settlement with T-Mobile that "resolves" the state's anti-trust claims. This resolution comes in exchange for a legally-binding promise from the new T-Mobile: following the merger, the combined entity must not raise prices on the wireless service plans of Texas residents for a period of five years.
"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..." Paxton said in a statement. "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... This agreement achieves those objectives."
Whether or not the agreement does indeed achieve those objectives is undoubtedly going to be the topic of much debate among Texas residents. Regardless, for now, this deal seems to be the best outcome they're going to get.