The US Federal Communications Commission Chairman Ajit Pai said he would back the merger between the telecommunications operators T-Mobile and Sprint in the US markets. The 26 billion dollars deal might be proceeding after the companies had made some adjustments to the operations.
According to Wall Street Journal this assurance would help the merger although the antitrust issue is still on the agenda. The merger needs the approval from both US Federal agencies and some market specialists expect that the FCC decision will boost also the Justice Department’s antitrust division to accept the merger.
-Two of the FCC´s top priorities are closing the digital divide in rural America and advancing United States leadership in 5G, the FCC Chairman Mr. Paid said according to WSJ.
In 2017 the FCC report found that the wireless business has had effective competition as prices for mobile data has been falling.
Today T-Mobile and Sprint said that they have agreed to invest in new wireless broadband service, especially in rural areas and to build new 5G infrastructure. The companies also agreed to sell Sprint´s Boost brand, a prepaid mobile phone service with millions of customers.
Shares of Sprint (S) jumped 22,8 % to 7,59 dollars in New York and T-Mobile´s (TMUS) shares were also trading higher, up 4,80 % to 78,99 dollars. The whole sector was also up: Verizon(VZ) up 1,82 % to 59,51 dollars and AT&T (T) up 1,89 % to 32,40 dollars.