T-Mobile Sprint Merger Halt

T-Mobile Sprint Merger Halt: As you already know that T-Mobile and Sprint have decided to merge together to make it one network covering more people on their network.

T- Mobile states that they will soon merge together allowing all spring users to use the T-Mobile network and T-Mobile users allowing them to roam on the Sprint towers to get more coverage in their areas.

It has come to my attention that the merger has halted per FCC (Federal Communication Commission) There are reports that Sprint has wrongly claimed monthly government subsidies for 885,000 low-income subscribers.

Merger Impact

The subsidy issue could impact Sprint’s pending merger with T-Mobile (TMUS) significantly. Yesterday, FCC Democratic member Geoffrey Starks pushed to pause the pending merger until the subsidy matter is investigated.

According to a statement released by Commissioner Geoffrey Stark, Sprint allegedly misused funds for approximately 10 percent of its Lifeline customers, a program designed to help low-income households afford phone and broadband service through subsidization. In his statement, Stark writes:

Statement

“The draft order relies heavily on information submitted by Sprint, a company alleged to have over-collected Lifeline support, and inaccurately accounted for nearly 1 million inactive Lifeline accounts. There is no credible way that the merger before us can proceed until this Lifeline investigation is resolved and responsible parties are held accountable.

What Does That Mean With The Merger?

Economic analysis shows that the proposed T-Mobile/Sprint merger will lead to the loss of 30,000 jobs due to the closing of duplicative stores and headquarters functions. It also said that none of the developments over the past few months regarding the merger have changed CWA’s fundamental assessment of it as a “job-killing merger.”

The final approval of a merger could be on hold until the first quarter of 2020 if the state attorneys bring their lawsuit to trial, but there is still a 20% chance of rejection, the analyst said. “We expect Verizon to aggressively target Sprint subscribers during the transition and, for the near term, TMUS/S trends to look weak. The long-term margin gains will be worth the short-term integration of pain.”

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