T-Mobile, Sprint Agree To Provide Most Texans With 5G Coverage Following Merger

Nov 25
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Earlier this year the Federal Communications Commission approved carrier T-Mobile's merger with Sprint. The deal has been in the pipeline for a long time now, and T-Mobile is hoping that things will wind up before its current CEO John Legere steps down next year. While the FCC gave the go-ahead to the two companies, they're still facing resistance from the state attorney generals who believe that the merger will raise prices for customers. Today, T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) have secured a win as Texas attorney general Ken Paxton has settled with the two companies.

Texas Attorney General Ken Paxton Conditionally Settles With T-Mobile, Sprint For Their Merger

In a press release, the Texas Attorney General's office has confirmed that the state has no objection to the proposed merger between carriers T-Mobile (NASDAQ:TMUS) and Sprint. This decision comes after the AG and the carriers have reached a settlement through which the new entity emerging from the T-Mobile and Sprint merger will ensure that certain conditions are met.

T-Mobile Was so Hyped for 5G They Released It Early

The primary concern shown by the attorneys generals in their opposition to the merger is the fact that they fear that due to a larger size, the New T-Mobile will be able to hurt customers by stifling competition. To allay these fears, T-Mobile has agreed to several conditions in its settlement with the Texas attorney general.

Texas Attorney General Ken Paxton on the left

According to the details of the settlement, the New T-Mobile will offer users the same plans that it's offering them right now for the five years following the merger and offer users data plans that are much cheaper than those found in the industry. Additionally, similar to the carriers' agreement with the FCC, Texas has also made it mandatory for the new T-Mobile to provide 5G coverage to the state.

As per the details, T-Mobile (NASDAQ:TMUS) and Sprint (NYSE:S) will be required to provide ''most'' of Texas' citizens with 5G coverage over the next five years. The carriers will also have to increase this coverage over the next six years, effectively ensuring that almost the full state gets 5G coverage.

The settlement also ensures that following the merger, employees of former T-Mobile and Sprint that reside in the state are offered jobs in the new T-Mobile. Following the agreement, the two carriers will now have to convince 15 other attorney generals about the merits of their merger and how it will not harm competitiveness or customers. The trial for these concerns will commence on December 4th.

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