Sprint, T-Mobile closer to connecting

T-Mobile’s $26.5 billion takeover of Sprint moved closer to completion after a top regulatory official said he’d approve the deal.

Federal Communications Commission Chairman Ajit Pai said Monday he’ll back the deal. A main selling point for him is the promise that the companies would expand internet access in rural areas. The companies will also help the rollout of 5G, the next generation of mobile networks.

The full commission must still vote, and the Justice Department must also clear the deal.

The current momentum marks a turnaround from the companies’ prior attempts to strike a deal. The Obama administration rebuffed their earlier efforts to merge, as well as an attempted deal between AT&T and T-Mobile, on concerns that such deals would hurt competition in the wireless industry.

Sprint stock jumped 12.5% and T-Mobile gained 3.9%.