To get its go-ahead for their merger, T-Mobile US Inc. and Sprint Corp. might have to create a new competitor with their network.
T-Mobile and Sprint are two of the largest mobile carrier in America and a merger will make them the third-largest mobile carrier in the market.
People with the knowledge of the matter told Bloomberg that the two companies are tinkering with the idea in order to get the Justice Department approval for the merger.
Currently, Verizon Communications and AT&T are market leaders in the US.
The competitor will be an independent company that can compete with the new company once it is merged into one company.
It would be recalled that T-Mobile and Sprint announced a 26.5 billion merger deal in 2018.
There are indications that the plan might be hard to execute. While T-Mobile/Sprint have argued that they will create a third force in the market, the US Justice Department antitrust chief, Makan Delrahim, is said not to be convinced with three players.
While the companies have secured a go-ahead from the Federal Communications Commission, the DoJ’s sanction is critical for the merger to move forward.
