New York Post reported that US regulators believed that just three national providers were adequate, which sent the shares of both Sprint and T-Mobile up sharply on Monday.
The duo aims to create an entity that is strong enough to take on top rivals Verizon (VZ) and AT&T (T), both of which are way ahead in the 5G race. Sprint and T-Mobile have argued that they must join forces in order to compete.
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If the deal wins an approval from the Justice Department and FCC, the combined company will have over 127 million customers and will be in a better position for the deployment of 5G technology.
Deutsche Telekom, which owns over 63% of T-Mobile believes that the deal will make it through. Timotheus Hottges, CEO of Deutsche Telekom said the deal is good for the consumers as well as the country as a whole.
T-Mobile’s latest effort to convince regulators
Consumer groups have voiced concerns about the deal stating there will be a hike in prices if the two companies are allowed to merge. In order to convince the regulators that the merger would benefit customers, T-Mobile this week rolled a new plan called ‘T-Mobile Essentials’.
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The unlimited data, talk monthly plan starts at $60 for a single line. The company will charge $30 for the second line and an additional line can be availed by paying extra $15. This new plan matches Sprint’s unlimited plan and is less than the base offer at Verizon.