Republicans and two Democrats must still vote,
and the Justice Department must also clear the
deal. State attorneys general may also move
against the combination.
Pai said that the combination will help bring
faster mobile broadband to rural Americans.
The companies have made promises on building
out 5G and expanding rural broadband before,
but now they are attaching timelines and
agreeing to penalties if they fail to meet their
commitments. For instance, the companies
promise to make fast internet available to 99% of
Americans within six years after the deal’s close.
T-Mobile US Inc. and Sprint Corp. also said that
they would sell Sprint’s prepaid cellphone brand
Boost Mobile to address antitrust concerns.
Several public-interest advocates dismissed the
companies’ promises as not solving the issues
posed by industry consolidation. Along with
labor groups, the advocates have argued that
the deal will lead to price increases and job cuts.
Democratic lawmakers have also been skeptical
of the companies’ promises.
Just because the FCC seems ready to approve
the deal doesn’t mean the Justice Department
will, as the two agencies have different criteria.
The Justice Department evaluates deals on
whether they harm competition and raise
prices for consumers, while the FCC examines
whether a merger fulfills “public interest” goals.
Expanding internet access to more people could
count as one such goal, for example.
David Cicilline, a Rhode Island Democrat who
heads the House antitrust subcommittee,
called on the Justice Department to require
that Sprint and T-Mobile show that the deal
won’t harm consumers.
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