Report: DoJ Analyzes T-Mo-Sprint Deal’s Impact on Wireless Companies
The Department of Justice is trying to determine how a merged T-Mobile and Sprint might affect smaller wireless companies. Sources tell Reuters the DOJ is speaking with small wireless operators that buy access to the major telecoms’ networks at wholesale rates.
The $26 billion merger deal would eliminate competition between the two carriers that have been dominant players in selling wireless network access to wireless companies that serve price-conscious customers; a merged entity could lead to higher prices for those customers, according to the account.
And while a merger might entice T-Mobile and Sprint to create some efficiencies in their combined wireless infrastructure deployments, overall it may be good for towercos, some analysts have said. But the merger may lead smaller wireless companies to tighten those infrastructure investments if they need to expand other operational outlays.
Neither the DoJ, T-Mobile or Sprint responded to requests for comment. The department’s examination of the wholesale market suggests the government is giving the deal a thorough review, reports Reuters.