A group of ten US states are seeking to block the merger on the grounds of concerns over costs to consumers
A US Court in New York has scheduled a pre-trial hearing, involving the Attorney General’s of 10 US states who are seeking to block the proposed merger of Sprint and T-Mobile, for next week, according to a Reuters report.
Judge Marrero has set a date for the trial of the 21st June 2019.
Ten states, including New York and California, have filed a suit with the US District Court for the Southern District of New York to block the proposed $26 billion deal.
The group of ten states claim that the merger will end up costing consumers around $4.5 billion per year, whilst dramatically reducing competition, particularly in the pay-as-you-go sub-sector. T-Mobile and Sprint have offered to sell off their Boost pay-as-you-go subsidiary in order to allay these concerns.
US President, Donald Trump, is adamant that the US must rollout commercial 5G networks as soon as possible, as it looks to become a world leader in next generation mobile networks. Proponents of the deal say that the merger would create the US’ third biggest telco, with the scope and scale to challenge the stagnant duopoly, presided over by AT&T and Verizon – thus expediting the rollout of 5G across the nation.
Before the deal can be approved, the pair must obtain the regulatory approval of the Federal Communications Commission (FCC) and the Department of Justice (DoJ).
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