Sen. Elizabeth Warren (D-Mass.) was among the critics of the newly-proposed merger between Sprint and T-Mobile who called for a thorough investigation into the deal, saying it would further reduce competition in the wireless marketplace and consolidate power in the hands of just three carriers.
The deal was reached after numerous past attempts by the two companies to merge, as well as a proposed takeover of T-Mobile by AT&T, which was blocked by the Federal Communications Commission (FCC) in 2011 on the grounds that it would stifle competition.
The $26.5 billion deal would give the newly-formed corporation a combined 125 million customers and, according to T-Mobile and Sprint, would enable the entities to create a high-capacity 5G wireless network that could compete with at-home broadband connections provided by cable companies.
Groups including Free Press argue that the merger would serve only the interests of the two companies, despite T-Mobile and Sprint’s claims that they would merge while increasing hiring and without raising prices—both uncommon for corporate mergers.
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“No one but T-Mobile and Sprint executives and Wall Street brokers wants to see this merger go through,” said Matt Wood, policy director of Free Press, in a statement. “Greed and a desire to reach deeper into people’s wallets by taking away their choices are the only things motivating this deal. What we know about the wireless market is that customers actually win when mergers are blocked.”
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