Sprint Corporation (S) will have to persuade FCC about T-Mobile deal
Sprint Corporation (NYSE:S) will need to persuade Federal Communications Commission (FCC) about the idea of buying T-Mobile. The FCC Chairman Tom Wheeler is skeptical about the deal. Wheeler reportedly told Sprint Chairman Masayoshi Son and CEO Dan Hesse that he would keep an open mind about the deal, but he has been a defender of competition.
Sprint argues that the current market is not serving U.S. consumers well because Verizon and AT&T dominate the market so it makes sustainable competition from T-Mobile and Sprint very challenging, according to Reuters. It is believed that Sprint would acquire T-Mobile.
T-Mobile would be interested in making a deal, otherwise they will continue their Uncarrier strategy forward. A few years ago, federal regulators blocked AT&T’s bid to acquire T-Mobile for $39 billion.