US DOJ unlikely to approve Sprint T-Mobile merger

US DOJ unlikely to approve Sprint T-Mobile merger”

If you believe T-Mobile, the Sprint merger is completely, 100% necessary for it to field a 5G network that is competitive with Verizon and AT&T.

A sign for a T-Mobile store is seen in Manhattan, New York, U.S., April 30, 2018.

According to The Wall Street Journal, the Department of Justice isn't so keen on the impending merger.

T-Mobile CEO John Legere says the premise of the Wall Street Journal's story "is simply untrue".

A third person familiar with the investigation said the probe was going along as expected, adding there had been no serious discussion of any divestitures of spectrum or other assets and that much of the conversation with regulators had been about proposed efficiencies in the development of 5G.

Sprint and T-Mobile declined to comment further when contacted by Ars.

Sprint and T-Mobile are in the final stages of a merger, nearing completion.

It's said that T-Mobile could still turn things around by offering assets sales to alleviate the DOJ's concerns, but it's now unclear what the next steps are.

The T-Mobile/Sprint deal would reduce the number of nationwide mobile carriers from four to three, limiting customer choice across the United States.

The Obama administration rebuffed the companies' earlier effort to merge, as well as an attempted deal between AT&T and T-Mobile.

T-Mobile unveiled an in-home Internet service last month, while claiming that it can only expand it significantly if the government approves the merger. The officials are also reportedly prepared to sue T-Mobile and Sprint if federal officials don't help them to challenge the proposed merger.

The final decision is still several weeks away as per the report. But the companies' own previous statements about their 5G plans contradicted those claims, and government officials don't appear to be impressed by the 5G argument.

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