Merger between T-Mobile and Sprint unlikely to happen as now structured

T-Mobile and Sprint agreed to merge under the T-Mobile banner back in April 2018.

The Wall Street Journal and Reuters both report that DOJ officials are highly skeptical of the deal.

The Wall Street Journal reported today that the U.S. Department of Justice is unlikely to approve the planned merger between T-Mobile and Sprint as it's now structured.

DOJ staffers "have told T-Mobile US and Sprint that their planned merger is unlikely to be approved as now structured", The Wall Street Journal reported today, citing people familiar with the matter. However, reducing the number of national carriers to three is nearly certain to increase prices and decrease competition in the long-term. Sprint Executive Chairman Marcelo Claure also claimed that the "article is not accurate", adding that Sprint "continue [s] to have discussions with regulators about our proposed merger". It cited people familiar with the matter. T-Mobile and Sprint previously insisted that the merger would create jobs and lead to improved networks.

Sprint and T-Mobile declined to comment further when contacted by Ars. A number of state attorneys general are also reviewing the deal.

The Obama administration rebuffed the companies' earlier effort to merge, as well as an attempted deal between AT&T and T-Mobile, on concerns such deals would hurt competition in the wireless industry. House Democrats grilled the companies in a hearing in February.

A group of eight Democratic U.S. senators and independent Senator Bernie Sanders urged the Justice Department and FCC to reject the deal, saying monthly bills could rise as much as 10 percent.

Legere has also pledged to build 5G without using networking equipment from Huawei Technologies Co Ltd or ZTE Corp, two Chinese telecommunications firms distrusted by US national security experts.

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