Minnesota and Three Other States Join Suit to Stop T-Mobile-Sprint Merger
Minnesota, Hawaii, Massachusetts and Nevada are joining nine other states and the District of Columbia in an amended complaint to block a merger between T-Mobile and Sprint. T-Mobile U.S. Inc. and Sprint Corporation are the third and fourth largest mobile wireless networks in the U.S., respectively.
T-Mobile announced a $26.5 billion bid for Sprint, which has been met by significant backlash. The states that engaged in the legal fight say that the merger would reduce competition in the marketplace and drive cellphone service prices up, a move that would be detrimental to consumers. T-Mobile’s attorney defended the merger, saying that it would actually boost competition because the merger would allow two smaller players to combine to compete with the bigger players in the industry. T-Mobile and Sprint both allege that the merger is the only way for them to keep up with the development of a 5G mobile network and compete with AT&T and Verizon. Attorneys for both sides hope that the issue will reach trial by October and have recommended an October 7, 2019 trial date.
Minnesota’s Attorney General, Keith Ellison, said the merger will negatively impact customers in Minnesota because market consolidation and increased prices will make it more difficult for Minnesotans to afford a necessary part of modern life.