DOJ wants T-Mobile, Sprint to create a new wireless competitor, report says
The two carriers are working to get their $26.5 billion merger approved.
Shelby BrownEditor II
Shelby Brown (she/her/hers) is an editor for CNET's services team. She covers tips and tricks for apps, operating systems and devices, as well as mobile gaming and Apple Arcade news. Shelby also oversees Tech Tips coverage. Before joining CNET, she covered app news for Download.com and served as a freelancer for Louisville.com.
She received the Renau Writing Scholarship in 2016 from the University of Louisville's communication department.
Watch this: Lawmakers: T-Mobile-Sprint merger better help rural users
says the merger would further the agency's two main objectives: closing the digital divide in rural America and advancing the US leadership in
. As part of its concessions to the FCC, T-Mobile agreed to build-out requirements to ensure 5G deployment in rural communities, a promise to offer a wireless home broadband solution that could be a wireline substitute and divesting the prepaid brand Boost Mobile.
But according to unnamed sources, the DOJ still isn't satisfied because these concessions don't go far enough to address antitrust concerns, specifically because the merger would eliminate one of the four national wireless competitors. The two wireless carriers have been working on possible concessions to get the deal approved.
Since the deal was announced last year, T-Mobile and Sprint have argued that the combined company wouldn't harm competition because it would create a stronger No. 3 player that would be almost equal in size to
, which dominate the wireless market with 70% market share. The companies have promised to add jobs and not to raise prices on services for three years.
Sprint and T-Mobile weren't immediately available for comment. The DOJ declined to comment.
Originally published May 30, 6:14 a.m. PT. Updates, 7:52 a.m.: Adds background information; May 31: Includes "no comment" from the DOJ.
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