Ten states led by New York and California filed a lawsuit today to stop the Sprint and T-Mobile merger, saying consumers will be hurt due to reduced competition (via Reuters).
Sprint, T-Mobile Merger
T-Mobile wants to buy Sprint for US$26 billion. The FCC gave the deal the green light, but the Justice Department’s antitrust division staff has recommended the agency block the deal.
The complaint comes as the U.S. Justice Department is close to making a final decision on the merger, which would reduce the number of nationwide wireless carriers to three from four.
The all-Democratic attorneys general from the 10 states, including Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia and Wisconsin, say the reduced competition would cost Sprint and T-Mobile subscribers more than $4.5 billion annually, according to the complaint.
New York Attorney General Letitia James also said that in upstate New York, carriers still struggle to provide 3G service to customers, noting the deal won’t guarantee more towers and coverage.