Justice Dept. Probing Sprint/T-Mobile Merger Effect on MVNOs

[cdmagurus.com]

The U.S. Department of Justice is exploring what impact the proposed merger of Sprint and T-Mobile will have on smaller carriers and MVNOs. Sprint and T-Mobile separately serve the prepaid space via their own Boost Mobile and MetroPCS brands, respectively, as well as MVNO's, such as Google-run Project Fi. With reduced competition, the Justice Department is concerned that the tie-up between the two companies could lead to higher prices for prepaid consumers. Reuters says the Justice Department "has been speaking with small wireless operators that buy access to the major wireless networks at wholesale rates, and is seeking their opinions about the merger." David Glickman, CEO of MVNOs Ultra Mobile and Mint Mobile confirmed that he'd been asked similar questions about the merger by the Justice Department. The $26 billion deal was proposed earlier this year and would see the nation's third- and fourth-largest carriers become one. Antitrust investigations are normal for such deals. No one from the Justice Department or T-Mobile commented on the investigation.


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