T-Mobile and Sprint finally succeeded to get the approval for their $26 billion merger deal on Tuesday.
The decision by a federal judge approving the deal to merge third- and fourth-largest wireless carriers of the United States also put the different arguments that are in favor and against the deal to an end.
The ruling will going to be dramatically changing the wireless carrier market in the United States. In his decision US District Court Judge Victor Marrero rejected the fears of anticompetitive behavior pointed out by thirteen US states and the District of Columbia in their lawsuit to stop the merger. Marrero in his ruling said that he did not see the companies to be following anticompetitive practices.
After the merger, which is expected be completing in April, U.S. wireless market would be left with New T-Mobile, Verizon and AT&T as three major equally-sized competitors. The merger will also work as catalyst in forming the Dish Network as new and fourth major player in the U.S. wireless carriers market.
Sprint could not likely to be operating as a competitive nationwide player on its own, said the judge in the ruling. The fourth-largest U.S. wireless carrier has continuously been losing customers and called 5G deployments not possible without merging with T-Mobile, said the ruling. Dish will be better and significant option to fill the competition gap left by the Sprint after merging into T-Mobile.
State attorneys general were in argument that the merger would lead to a less competitive wireless service market with Americans to pay higher bills. But companies, to alleviate the antitrust, already made commitment of not raising the prices of their plans for subsequent three years of the merger.
The decision resulted in surprising 70% rise in Sprint’s share price on Tuesday while T-Mobile’s stock saw a rise of 12% in early trading on the day.