Ajit Pai is now formally approving the deal, but State Attorney Generals could still get in the way.
Background: T-Mobile and Sprint announced plans to merge in June 2018. The two operators made commitments to facilitate the approval, including not to raise prices for three years, to divest Boost Mobile (one of Sprint’s prepaid wireless brands), and to build a 5G network to cover 97% of the US within three years (and 85% of the rural population), and 99% of Americans within six years (and 90% of the rural population). Specifically, companies have committed to rollout a 5G home product as an alternative to fixed broadband. In July 2019, the Department of Justice gave the green light to the merger, which means the FCC’s approval is the only formal hurdle before the deal can be finalised.
Pai’s order is now pending approval: The FCC’s chairman, Ajit Pai, has had a favourable view of the merger all along; this week, he formalised his approval and shared a draft order with the FCC’s commissioners, which would approve the merger subject to conditions, as it finds the deal to be “in the public interest”. These conditions largely mirror the commitments made by the merging parties.
What happens now? There is no indication yet as to when the vote will take place. It is likely that FCC commissioners will vote along party lines, thereby giving the go-ahead to the merger despite the dissent of the two Democrat commissioners. However, dissent is growing among State Attorney Generals, with 15 state AJs now openly against the deal and ready to join a lawsuit to block it; the last state to join the lawsuit was Oregon, earlier this week.
