FCC chairman backs T-Mobile-Sprint deal
NEW YORK — A key federal regulator says he backs T-Mobile’s $26.5 billion takeover of rival wireless carrier Sprint, a crucial step for the deal’s approval.
Federal Communications Commission Chairman Ajit Pai said Monday he supported the deal because the two companies promised to expand mobile internet access in rural areas and roll out 5G , the next generation of mobile networks.
While Pai’s backing is important, further steps remain. The full commission of three Republicans and two Democrats must still vote, and the Justice Department must also clear it. State attorneys general may also move against the combination.
Pai said Monday that the merger will help bring faster mobile broadband to rural Americans.
The companies have made promises on building out 5G and expanding rural broadband before, but now they are attaching timelines and agreeing to penalties if they fail to meet their commitments.
T-Mobile US Inc. and Sprint Corp. also said Monday that they would sell Sprint’s prepaid cellphone brand Boost Mobile to address antitrust concerns.
Several public-interest advocates dismissed the companies’ promises as not solving the issues posed by industry consolidation. Democratic lawmakers have also been skeptical of the companies’ promises.
David Cicilline, a Rhode Island Democrat who heads the House antitrust subcommittee, called on the Justice Department to require that Sprint and T-Mobile show that the deal won’t harm consumers.
“Empty promises will not make this transaction a good deal for American workers and consumers,” he said.