The Federal Communications Commission has approved the $26.5 billion combination of Sprint and T-Mobile on a 3-2 party-line vote on Wednesday.
The wireless merger still faces opposition from a coalition of state attorneys general, who argue the deal is bad for competition. The companies won’t merge while litigation persists.
The antitrust trial is scheduled to start in New York in December, an unusual situation given that the Trump administration’s Justice Department approved the deal.
The FCC chairman, Ajit Pai, a Republican, backed it months ago citing the companies’ promise to build out a next-generation 5G network to many rural areas, improving internet access.
The Democratic commissioners say going from four to three major wireless companies will mean higher prices for consumers. They say it will be difficult to enforce promises made by T-Mobile and Sprint.
Commissioner Jessica Rosenworcel explained her “no” vote:
“We’ve all seen what happens when markets become more concentrated after a merger like this one. In the airline industry, it brought us baggage fees and smaller seats. In the pharmaceutical industry, it led to a handful of drug companies raising the prices of lifesaving medications. There’s no reason to think this time will be different. Overwhelming evidence demonstrates that the T-Mobile-Sprint merger will reduce competition, raise prices, lower quality, and slow innovation.”
Neither Sprint nor T-Mobile offered comment, according to CNBC.
Pai also issued no comment.
