A merger between Sprint and T-Mobile might not face many hurdles at the Trump administration
A potential merger of T-Mobile and Sprint could fare well with the Trump administration, which has telegraphed for months that it isn’t resolutely opposed to the combination of the country’s third- and fourth-largest wireless giants. For years, the two companies have flirted with a tie-up, and while talks became particularly serious in 2014, Sprint-owner SoftBank pulled the plug amid threats from the U.S. government that it would block the deal in its tracks.
Under President Trump, however, the Federal Communications Commission has reversed course and sought to deregulate the telecom industry. And the agency’s chairman, Ajit Pai, previously has said he doesn’t “take a preexisting view as to what the optimal market structure is” when it comes to the country’s four major wireless carriers: AT&T, Verizon, T-Mobile and Sprint. “I don’t think any regulator who embraces regulatory humility and intellectual honesty about economics can say whether three or four or five [carriers] is the optimal number,” he said earlier in 2017. “What I do want to see is a competitive wireless marketplace.”
A merger between Sprint and T-Mobile might not face many hurdles at the Trump administration