Recently, the department of justice allowed a merger between T-Mobile and sprint, but is is suing...

Recently, the department of justice allowed a merger between T-Mobile and sprint, but is is suing so that a proposed merger between AT&T and Time Warner will not go through. Why do you think the DOJ approves T-Mobile/sprint merger but not the AT&T/ Time Warner merger?

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Expert Solution

1. T-Mobile, the No.3 U.S Mobile operator declared their willingness to join their rival support and the big question is if U.S. regulators will agree the transaction? which definitely would shrink three large operators from four.

2. T-Mobile is interested in merging with Sprint because the U.S. government blocked its merging with AT&T because of the threat to market competitiveness last time.

3. T-Mobile due to its innovative plan like free international data roaming, free Netflix and MLB, free in-flight texting, etc. went on to a huge success overnight by promising aggressive pricing.

4. It also promised that if the merger is approved with Spring, they will develop the fastest 5G network with reasonable prices to the consumers.

5. At&T/Time Warner merger is not approved as they would dominate all the other telecommunication competitors where if T-Mobile/Sprint merger might not harm so. And this is the only reason there's a chance for a merger.

Rahul Sunny answered 1 year ago

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