T-Mobile and Sprint Win Case, Can Move Forward With Merger

In his ruling, Judge Marrero rejected the two main arguments put forth by the states seeking to block the merger, namely that Sprint could effectively compete without it and that it would inherently l...
T-Mobile and Sprint Win Case, Can Move Forward With Merger
Written by Matt Milano

As predicted, U.S. District Judge Victor Marrero has ruled in favor of T-Mobile and Sprint, clearing the way for the two companies to merge, according to The Wall Street Journal.

In his ruling, Judge Marrero rejected the two main arguments put forth by the states seeking to block the merger, namely that Sprint could effectively compete without it and that it would inherently lead to a less competitive landscape. Throughout the trial, T-Mobile and Sprint’s attorneys had argued that without a merger, the latter would no longer be able to compete on the same national level as Verizon, AT&T or T-Mobile and would drop to a regional carrier. The two companies also argued that their combined resources would enable them to compete with Verizon and AT&T even more, not less, especially in the competitive 5G market.

“T-Mobile has redefined itself over the past decade as a maverick that has spurred the two largest players in its industry to make numerous pro-consumer changes,” the judge wrote, agreeing with T-Mobile’s argument. He said the deal would help extend “T-Mobile’s undeniably successful business strategy for the foreseeable future.”

The ruling is good news for both T-Mobile and Sprint customers. T-Mobile will gain access to the wealth of spectrum Sprint owns, but has not had the money to utilize, as it continues its 5G rollout. Sprint customers, in turn, will benefit from the superior coverage and speed T-Mobile’s network offers. Shares of both companies were up in premarket trading.

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