T-Mobile and Sprint can finally celebrate after getting their merger deal approved by the court. The deal got a green signal from the federal court on Tuesday and the U.S. District Judge, Victor Marrero stated that the merger of these two companies will not lead to any competition in the Telecom sector.
Now, the door of the merger has opened after 2 years of struggle and the major reason behind the halt was the argument given by the 14 state attorney generals, as they said that the merger will lead to the competition in the market and the consumers will have to take the burden of the same due to hike in the data carrier price.
However, the statement was overruled by the District Judge and he said that this deal is anticompetitive and the merger will boost the Telecom sector.
Consequences of Merger of T-Mobile and Sprint
The combined assets of these two companies will help them to create a milestone in the Telecom field and they are ready to start 5G services in the U.S. and will try to take the industry one step ahead so that the users can get much more benefits from this sector.
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After the merger, the company name will be T-Mobile and Mike Sievert will be the new CEO after May 2020. Until April 2020, John Legere will handle the business and thereafter, he will resign from the post of CEO.
Is Merger Necessary?
The major leading Telecom companies in the U.S. are Verizon and AT&T and the big boys are quite big with a large consumer network. So, in this scenario, T-Mobile and Sprint can only complete if they leverage each other’s assets and the merger will allow them to do so.
Also, Sprint was losing its customers and was trying to get stable in the market and the condition of T-Mobile was quite good as it already had 1 million postpaid customers in the last quarter of 2019. So, for Sprint, the merger made a lot of business sense.