US States vs. T-Mobile: What This Means

So Monday, I talked about a merger between two software data companies. But nobody’s really raising Cain about that. However, this potential merger could effect everybody. And lots of people, from IT service to US senators are ticked off. It’s US States vs. T-Mobile.

So T-Mobile is the third largest phone company in the US. But they plan to purchase Sprint, the fourth largest phone company in the US. This merger will cost $26 billion, and many are not happy. In fact, ten states filed a lawsuit to fight this merger. This includes states from all walks of life, like the powerful New York and California. It also includes deep red states like Mississippi. Then it includes border states like Virginia and Wisconsin.

Their lawsuit argues this merger will just about kill competition in the phone market. It’s already small. But this merger will make it even smaller. Furthermore, these state attorney generals say it will cost T-Mobile and Sprint customers well over $4 billion a year. Also keep in mind this is on the eve of the Department of Justice’s decision. Because when it comes to mergers of this size, the Dept. of Justice has to approve it. We’ll see what happens.

It looks like this merger could go either way, either approval or denial. Most of the FCC (Federal Communications Commission) approve of the merger. But anti-trust voices in the US gov’t want to block the deal. But these states vow to fight on and do whatever it takes to stop this merger. Stocks for both phone companies are taking a dive. So I’m guessing the stockholders don’t want it. Much of the public doesn’t want this either. Because even our computer repair clients complain this merge will jack up prices. It will also give less competition in an industry that already has too little of it. That what US States vs. T-Mobile boils down to. What does this means to you?

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