The Department of Justice’s approval of the T-Mobile/Sprint merger is a major step forward for our country.
The New T-Mobile will be instrumental in helping the United States win the global 5G race. Together with Sprint’s mid-band spectrum and T-Mobile’s low-band spectrum, the company will develop a 5G network that will cover people nationwide. Within six years, this network will cover 99 percent of the population. This will help Americans across the country — in rural areas and in cities — stay connected online and participate in the digital economy. 5G will create new industries and employment opportunities because of its enhanced connectivity, with some experts estimating it will create 3 million jobs.
By vigorously rolling out its 5G network, the New T-Mobile will incentivize other wireless carriers to do the same, solidifying the United States’ position as the global leader in technology.
The merger also increases competition and benefits consumers by creating a larger third competitor to the two top wireless carriers, which will drive down prices and motivate all carriers to innovate and improve their services. T-Mobile and Sprint have already made considerable voluntary commitments for their new network, including a pledge to not raise prices for three years.
Unfortunately, the government insisted that the two companies comply with extensive divestiture and behavioral conditions. In order to lay the groundwork for a fourth wireless competitor, T-Mobile and Sprint must divest key assets and provide access to network infrastructure to Dish Network Corporation. While the Department of Justice is well-intentioned, private companies should be able to merge and separate without government intervention or conditions.
The Department of Justice’s Antitrust Division made a good call by approving the merger, which will be a big boost to both technological and economic growth.