The Department of Justice speaks to States to Support T-Mobile, Sprint Merger

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The Department of Justice is urging state officials to support a planned arrangement which would allow

T-Mobile US
Inc.

TMUS 5.43%

and

Sprint
Corp.

S 7.39%

to merge assets with. t

Dish Network
Corp.

DISH 0.87%

, according to people who are familiar with the subject.

The debates come in response to some of the general state solicitors who filed a federal anti-thrust attire that wants to prevent the merger over $ 26 billion, the people say. Discussions are ongoing; it is not possible to ascertain whether any of the states will change their support.

These talks include general solicitors from states who abstain from entering the lawsuit, according to another person who was familiar with the subject.

The delay came from Washington as T-Mobile reported a further quarter of customers' gains and raised its forecast for the year. The company submitted 710,000 net phone calls paid and completed the period with 131,000 prepaid subscribers.

The company issued its quarterly results but called a planned conference with investors. His executives argued that the combination with Sprint will help the two companies to speed up 5G network operation and compete with it.

Verizon Communications
Inc.

and

AT & T
Inc.

A group headed by the Attorney General of New York and California invoked in June to prevent the merger, saying it would bring up prices for cellphone services. The suit was unusual in that it was filed before the Department of Justice completed the review of the discussion and was still negotiating with the companies.

A spokesman for New York's Attorney General said Thursday that the Department of Justice was not in contact with his office nor was there any details regarding the potential capacity of a settlement. A spokesperson from the Department of Justice did not respond to an application.

After the states filed their suit, the Department of Justice entered into an agreement with T-Mobile and Sprint designed to create a new wireless carrier by bringing assets to Dish's satellite TV provider, who intends to go into the wireless market for a long time. As well as customers and airwaves, Dish would have been working on the T-Mobile network for seven years, the Journal has reported.

Overall, T-Mobile reported that its second quarter earnings jumped to $ 939 million, from $ 782 million in the previous year. Revenue rose 3.9% to $ 11 billion.

T-Mobile raised its annual projection of post-paid customer gains to 3.5 million and 4 million, compared to its previous forecast of 3.1 million to 3.7 million. Post-paid subscribers are generally valued by investors, who are less likely to exchange suppliers, although T-Mobile has a large customer base in its Metro brand, which offers pre-paid plans.

Bellevue, Wash, completed a quarter with 66 million subscribers, rather than wholesale accounts marketed under other brands. The planned takeover of Sprint would bring the company while competing with AT&T in the customer race.

Write Drew FitzGerald at andrew.fitzgerald@wsj.com

Copyright © 2019 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1pdeb8

It appears in the printed edition July 26, 2019 as “U.S. The State Explosion of Sprint Dealing. # 39;

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