T-Mobile & Sprint Merger Finally Goes to Trial


Hey, this is Jahmal Abbott, thanks for tuning
in today and here with another quick minute. So I want to talk to you today about the lawsuit
that has finally came to court for t mobile and sprint. This is the first day and this is for 14 State
Attorney General’s including the District of Columbia, who are stopping the merger between
sprint and t mobile and this deal is worth $26 billion. So there’s a couple of arguments for the merger. So t mobile and sprint both state that this
is in the best interest for consumers. And this is what’s needed to compete against
the year the rivals at&t and Verizon in the US wireless market. They also contend to that they’ll bring some
competition to rural carriers as another option to provide 5g 100 megabit per second speeds
to roughly 90% of Americans. Across United States, and they’re saying that
this is a win win deal if this merger goes through. And now for the cons, so the State Attorney
General’s argue that this is not in the best interest for consumers and that the low income
consumers which make up a large portion of sprint, and T Mobile customers will be hurt
by this merger taking place. There’s also an argument to about the prepaid
wireless market being affected as well as some of the independent businesses that sell
these type of prepaid services if Finally, there’s concerns to about the new fourth wireless
carrier that we stood stood up, which would be Dish Networks, concerns about their ability
to actually execute and then be a competitive fourth wireless carrier in the United States. And there’s not a lot of confidence from the
State Attorney General’s about this being a viable option moving forward. There’s quite a bit of debate on LinkedIn
as well as all of our online was They’re not this is actually a good deal for consumers
or if it’s even a good deal all together for sprint and T Mobile. The one thing that has been made clear and
this is been brought up by sprint, and several documents to the SEC sensor, they’re publicly
traded company, they have to talk about their projections and where they see their cells
as a business going forward. Sprint is concerned that if they don’t merge
that their ability to be a national wireless carrier is going to be in jeopardy. On a recent earnings call this year. Sprint talked about the possibility of transitioning
from being a national carrier to a regional carrier, if this deal doesn’t go through. Also with Sprint’s 5g plans, they are largely
tied to T Mobile. So as of the present moment, Sprint has 5g
deployed in nine different markets. But that is pretty much the extent of their
5g plans that they’ve have made public. So there’s some concerns about the The cash
flow for Sprint’s there’s, there’s concerns about the viability of this carrier being
able to deliver on their promises. And that’s one of the concerns that sprint
is bringing to the attention of the public as well as to this judge who’s going to be
ruling on this case. So this case is expected to last for the next
two weeks. And from what we’ve heard so far, this judges
looking to make this a pretty quick case. So we’ll know here pretty soon whether or
not this deal will go through or if it still doesn’t go through and there’s some other
options that come up from this. So more to come. That’s just going on but the T Mobile and
sprint merger, we’re falling this one very closely, and we’re going to keep you up to
date on what’s happening. So this is Jahmal Abbott, with another quick
minutes.

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