The long-anticipated merger between T-Mobile and Sprint has reportedly received approval from the U.S FCC (Federal Communications Commission) on Tuesday. The regulatory body has disclosed its October 16th order announcing its approval for the $26.5 billion transaction, based on a 3-2 party-line, closed door vote.

The collaboration has evoked mixed reactions from the U.S community; Republican commissioners are celebrating the decision as an advantageous endeavor for rural America whereas the Democrats take the opposing stance and consider it to be catastrophic for consumers. Meanwhile, the state attorneys general coalition still presents a considerable legal challenge to the merger.

The FCC in a statement has apparently claimed that their decision is based on their belief that this partnership will aid in the bridging of digital divides and help the US emerge as an industry leader in advanced wireless technologies, particularly 5G.

They further added that both Sprint and T-Mobile have made clear their commitment towards delivering 5G services to over 97% of the American populace over the next three years, with robust plans to reach 99% of all Americans in six years. In rural America, this would entail the deployment of 5G technology to over 85% population over three years, and nearly 90% over six years.

Democratic officials, however, are disputing these commitments, stating that the promises made by Sprint and T-Mobile are unenforceable and further added that his merger would diminish the number of national service providers from four to three, in turn mitigating overall competition.

Democratic Commissioner Geoffrey Starks has reportedly commented that the short-term effects of this merger will include the potential loss of thousands of jobs, while the establishment of three prominent wireless providers aiming for market division, price hikes and strong competition for profitable customers will be observed in the long term.

The state attorneys general lawsuit, led by California and New York, is expected to go to trial in December and will contend that this collaboration will diminish competition and create a massive surge in consumer costs.

The merger, which had been proposed earlier in 2014, was previously rejected by the FCC and Justice Department.

Source Credit: https://www.npr.org/2019/11/05/776578139/fcc-clears-t-mobile-sprint-merger-deal