Texas Drops Opposition to T-Mobile – Sprint Merger

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Texas Attorney General Ken Paxton announced a settlement with T-Mobile on Monday. This ended the state’s ongoing antitrust issues regarding the telecommunication provider’s proposed merger with Sprint. It also means a further block to the merger has fallen.

T-Mobile and Sprint merger

T-Mobile Deal for Texas

As part of the agreement, T-Mobile committed to building a 5G  network across Texas. This will take place over the next six years and include rural areas.

Attorney General Paxton commented:

My office is responsible for protecting consumers and this settlement ensures that the New T-Mobile is not in a position to overcharge Texans for wireless service, and at the same time, obligates the New T-Mobile to invest in a high-quality 5G network that will serve the needs of Texas’ growing economy, or face stiff financial penalties.

Attorney General Paxton explained why his state joined the original lawsuit. It was “to protect Texans from unnecessary price hikes,” he said. Furthermore, he wanted “to ensure that Texans living in both urban and rural areas will not get stuck with substandard service.”  He said the agreement met the objectives.

Elsewhere, the deal stated that Texas residents employed by Sprint and T-Mobile will receive similar roles post-merger. T-Mobile customers are set to receive data plans at a lower rate than what is offered elsewhere in the industry.

The Case Continues

The Federal Communications Commission approved the $26.5 billion merger earlier this month. The Department of Justice did so in July. New York and California continue to oppose the deal. The case is due in court on December 9th (via The Verge).

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