A telecom merger that has been years in the making is poised to clear a major regulatory hurdle.
Ajit Pai, the Federal Communications Commission chairman, said Monday that he endorses the merger of T-Mobile and Sprint, a $26 billion deal. This came after the companies agreed to various concessions, including a pledge to not raise prices for three years.
“I believe that this transaction is in the public interest and intend to recommend to my colleagues that the FCC approve it,” Pai stated. “This is a unique opportunity to speed up the deployment of 5G throughout the United States and bring much faster mobile broadband to rural Americans. We should seize this opportunity.”
If approved, it would reduce the number of major U.S. wireless telecom carriers from four to three. The merger would combine third-largest T-Mobile with fourth-largest Sprint in competition with the two biggest providers, Verizon and AT&T.
“We’ve seen this kind of consolidation in airlines and with drug companies,” said FCC Commissioner Jessica Rosenworcel, who is a Democrat. “But now the @FCC wants to bless the same kind of consolidation for wireless carriers. I have serious doubts.”
Gigi Sohn, a public interest lawyer who worked as a counselor to former FCC Chairman Tom Wheeler under President Obama, said the deal is “still anticompetitive and anti-consumer.” Wheeler has previous warned that such a deal would cause prices to rise.
More at NPR.