Economy

Why T-Mobile Can Afford a Data Cap Hike

Why T-Mobile Can Afford a Data Cap Hike”

Reuters reported last week that some of the U.S. Justice Department's antitrust staff were skeptical about the deal, which would combine the third and fourth largest U.S. wireless carriers.

The combining the two wireless carriers would form a business with over 130 million USA subscribers, not far behind the two largest carriers Verizon Communications Inc and AT&T Inc.

First up, a report from Nikkei Asian Review says that SoftBank has reached an agreement to merge Sprint with T-Mobile. Due to that state of affairs, their current talks haven't even led to a divestiture cap that would be included in the upcoming merger proposal, signaling that they'd still be interested in a tie-up even if the federal government forces them into major concessions. Still, in order to be competitive with AT&T and Verizon, the two will have to retain as much spectrum as possible.

T-Mobile and Sprint now have the third and fourth most wireless network subscribers in the USA, both some way behind the leading two firms. Companies also typically place caps on the size of divestitures they are willing to accept during negotiations with regulators.

Since T-Mobile and Sprint neglected their former effort of combining in 2014 along with regulatory concerns, they now believe that the US antitrust enforcement environment has become more promising.

The two companies are said to be preparing a negotiating strategy once the agreement is announced, that will aim to meet demands from regulators on asset sales, which includes the selling of some of its spectrum licences.



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