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AG Shapiro sues to block anticompetitive megamerger of T-Mobile and Sprint

 

September 24, 2019



Attorney General Josh Shapiro has announced a lawsuit to block the anticompetitive megamerger of telecommunications giants T-Mobile and Sprint. Attorney General Shapiro is the 18th attorney general to challenge the merger, adding to the forward progress of New York, California, Texas, Colorado, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Nevada, Oregon, Virginia, Wisconsin, and the District of Columbia.

“All Pennsylvanians deserve access to affordable, reliable wireless service, and as Attorney General, I am committed to protecting that access,” said Attorney General Josh Shapiro. “The merger between T-Mobile and Sprint would severely undermine competition in the telecommunications sector, which would hurt Pennsylvanian consumers by driving up prices, limiting coverage, and diminishing quality. I’m proud to stand with my colleague Attorneys General in opposing this merger and advocating on behalf of Pennsylvania consumers.”

T-Mobile US Inc. and Sprint Corporation are the third and fourth largest mobile wireless networks in the U.S., and are the lower-cost carriers among the “Big Four” — Verizon Wireless and AT&T round out the market. Intense competition, spurred in particular by T-Mobile and Sprint, has meant declining prices, increased coverage, and better quality for all mobile phone subscribers. Pennsylvania’s wireless subscribers rely heavily on the benefits that competition brings to the mobile phone marketplace.

T-Mobile currently has more than 79 million subscribers, and is a majority-owned subsidiary of Deutsche Telekom AG. Sprint currently has more than 54 million subscribers, and is a majority-owned subsidiary of SoftBank Group Corp.

 
 

Reader Comments
(1)

nsykes writes:

If Mr.Shapiro doesn’t believe there is a healthy number of low cost wireless options have him visit the electronics section of his local Wal-Mart. T-Mobile is the 3rd largest wireless carrier in the US. When the transaction is final, guess what? Still the third largest. This is not an anti-competitive merger. In fact, it puts more pressure on AT&T and Verizon that you will have another player with the scale to challenge the current duopoly.

 
 
 

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