It’s official: The FCC has given the green light as of November 5th, 2019 for a massive T-Mobile and Sprint merger for a whopping $26.5 billion deal. Why this is concerning for many, and what it means for you in the long run.
FCC Green Lights the Deal
The FCC has given the go-ahead for what will be one of the largest technology mergers to ever take place in history as of November 5th, 2019, touting the fact that the merger will ‘enhance competition’, but it leaves the US Justice Department and consumers wondering at what cost- and with some pretty serious concerns surrounding the deal.
One would think that the joining of forces between two of the biggest phone companies in the world would undoubtedly offer consumers better service all around the board.
According to statements made by FCC Commissioner Starks, at one of their latest meetings regarding the merger, that couldn’t be further from the truth.
Currently, there are 4 major carriers. With two major telecommunication companies merging, the number will be brought to 3.
Thoughts from FCC Commissioners
“The proposed transaction is exactly the type of merger that the Justice Department and the Commission have discouraged and rejected in the past: one that would harm competition and result in higher prices and poorer service, particularly for the most vulnerable consumers,” wrote Starks in a statement.
Starks also goes on to say, “Sprint may be responsible for the most egregious violations of our Lifeline rules in FCC history,” Starks said. “Our review should have been held in abeyance following the Chairman’s recent announcement of an investigation into Sprint’s alleged misappropriation of Lifeline support for 885,000 ineligible accounts. If substantiated, this would represent the misuse of nearly 10 percent of the funds for the entire program.”
Commissioner Rosenworcel also had some strong words regarding the move as well. Read her statement here.
Selloffs and Stipulations
Sprint is selling Boost Mobile as part of the stipulations surrounding the merger. T-Mobile is being forced to sell all interest in the Dish Network. Whatever is leftover in the way of funds and companies will hopefully join forces to form a new company with competitive price points.
There is much speculation regarding whether the service provided by the new merger will be even the slightest bit affordable for many of its low-income subscribers, but that’s where other options would come in.
Many smaller companies are scrambling to figure out whether or not they will even remain relevant. Talks are underway amongst most, undoubtedly, trying to configure competitive options for their subscribers to stay up to speed with the larger 3.
The Supposed Purpose
The goal of the merger includes offering better 5G service to most of the country, where Sprint and T-Mobile alone have been lacking in comparison to Verizon and AT&T.
Many believe this partnership will only make matters more complicated in terms of cost. There is talk of the merger targeting the most lucrative subscribers with services specifically catered towards them.
Uncertainty Surrounding the Deal
Amid the uncertainty, it’s anyone’s guess what this might signal for the future of service provided.
In addition to all of the T’s needing be crossed, there are still 10 states that are fighting back after having filed lawsuits to protect their constituents.
Stay tuned for more as this is a developing story. We will, of course, bring you the latest between the lines.
What are your thoughts on the merger? Do you anticipate lesser quality and higher rates? Sound off in the comments as I’d love to hear your thoughts on this breaking story.