New York Attorney General Probes T-Mobile-Sprint Deal’s Impact on Prepaid Services

The New York attorney general’s office is investigating how T-Mobile’s  $26 billion deal to buy Sprint could impact competition in the pay-as-you-go wireless market, according to people familiar with the matter. Representatives from the state attorney general’s office have contacted companies that sell prepaid phone services in recent weeks with questions about pricing and customers. Dozens of other state attorneys general are part of the probe. Prepaid subscribers don’t sign long-term contracts and instead pay up front each month. Some prepaid brands called mobile virtual-network operators rent network capacity from the large US wireless carriers rather than owning the infrastructure. T-Mobile and Sprint together have about 30 million prepaid customers. Los Angeles-based FreedomPop and Ting are among the firms the New York attorney general’s office has contacted. A spokeswoman for New York Attorney General Barbara Underwood said the office was scrutinizing the proposed merger to evaluate its impact on New York consumers. “Mobile devices are indispensable in New Yorkers’ lives—especially for lower-income families who may rely on them as their only connection to the internet,” the spokeswoman said.