Last April, telecommunications companies, Sprint and T-Mobile made an announcement of their proposed merger. Lately, these companies announced to have postponed the deadline of their merger by another month. Reason behind the opting for extension by the telecommunication companies is that the merger deal hasn’t been approved by the US Federal Communications Commission or by the Justice Department.
On 29th April, T-Mobile and Sprint declared about the deadline extension for the $26.5 billion merger in a filing with the Securities and Exchange Commission. The two companies would now have till July 29th May, in order convince officials of both the Federal Communications Commission and Department Of Justice to accept the deal. The deal would merge the third and fourth largest wireless providers of the nation into one. Well, the telecommunication companies will need to convince the FCC and Justice Department about the necessity of the merger, in to participate effectively with Verizon and AT&T, who jointly are in charge of more than 70% of the wireless market. Top executives from these top companies, T-Mobile and Sprint were in Washington last month for meetings with the FCC and Justice Department.
In an interview, Justice Department Antitrust Division chief Makan Delrahim stated that the meetings were continuing as regulators are scrutinizing the deal. He stated that he hasn’t made up his mind. The probe is going on. He has urged some data from the companies that will be coming soon. We don’t have a set number of meetings or a time line.
The announcement of delay in merger comes at a time when the US carriers are leaning over backward to win business, with offers such as unlimited data and freebies such as access to Netflix. Sprint is still giving away a year of service for free.