U.S. District Court in New York approves T-Mobile/Sprint merger
T-Mobile US Inc. and Sprint announced that after receiving a favorable decision in U.S. District Court for the Southern District of New York the companies are now taking final steps to complete their merger to create the New T-Mobile.
“T-Mobile has redefined itself over the past decade as a maverick that has spurred the two largest players in its industry to make numerous pro-consumer changes,” the decision by Santurce-born Judge Víctor Marrero said.
“The proposed merger would allow the merged company to continue T-Mobile’s undeniably successful business strategy for the foreseeable future,” it said.
Once the companies combine their operations, some of the benefits of the New T-Mobile include the birth of the first nationwide 5G network and services that that will supercharge innovation throughout the U.S. economy, connect people throughout the country and help bridge the digital divide.
“Today was a huge victory for this merger … and now we are finally able to focus on the last steps to get this merger done,” T-Mobile CEO John Legere said. “We want to thank the Court for its thorough review of the facts we presented in our case.”
Jorge Martel, vice president of T-Mobile Puerto Rico, said, “This is a huge victory for this merger and excellent news for Puerto Rico, our 5G Network will be supercharged, we will continue to innovate boost economy and help bridge the digital divide.”
Once the merger is consummated, it is expected that Puerto Rico will have one less player, with the disappearance of Sprint. The telecom landscape will change once again after Liberty Puerto Rico completes its acquisition of AT&T de Puerto Rico’s assets.
This will leave three major players — T-Mobile, Liberty and Claro Puerto Rico — competing for the wireless market.
The T-Mobile and Sprint combination remains subject to certain closing conditions, including possible additional court proceedings, and satisfactory resolution of outstanding business issues among the parties.
The unified company has vowed to deploy a higher quality and more robust network for rural areas and to prioritize more vulnerable urban populations to ensure customers have a chance to thrive in the 5G economy.
The New T-Mobile has also promised better service and lower prices, competition to cable companies for in-home broadband services, and job creation over the next five years, increasing its payroll from 3,500 in year one, to 11,000 by 2024.
Additionally, plans to build more than 600 new retail locations and five new customer experience centers will create approximately 12,000 more jobs — many in small towns, the carrier said.
In a statement, Federal Communications Commission Chairman Ajit Pai commended the court’s decision saying it is a “big win for…consumers.”
“This transaction represents a unique opportunity to speed up the deployment of 5G throughout the United States, put critical mid-band spectrum to more productive use, and bring much faster mobile broadband to rural Americans,” Pai said.
“I’m gratified that the federal district court agreed with the FCC and U.S. Department of Justice that this merger is lawful and should be allowed to proceed,” said Pai, who has been a supporter of Puerto Rico’s economy through the expansion of telecommunications services.