A federal judge ruled today in favor of T-Mobile’s takeover of rival telecom Sprint. The $26 billion merger would combine the country’s third and fourth largest wireless carriers.
The court rejected arguments by attorneys general from 13 states and the District of Columbia. The states had argued that if the merger is permitted, it will stifle competition and lead to higher prices for consumers. But U.S. District Court Judge Victor Marrero was persuaded by T-Mobile and Sprint that that won’t happen. That’s in part because of the maverick role that T-Mobile has played in the last decade, pressuring AT&T and Verizon with its lower pricing and unlimited data plans. The judge also said the cellphone business is unusually dynamic, pointing to the brick phones that quickly gave way to flip phones.
If the merger goes through, the new T-Mobile would be nearly the same size as Verizon and AT&T, creating a market with three mobile giants. So what will this mean for consumers?
NPR’s Laura Wasley talks with Craig Moffett, senior analyst at MoffettNathanson Research and Gigi Sohn, fellow at Georgetown Law.
More at NPR.