Lawsuit on T-Mobile-Sprint Merger Delays Benefits to Taxpayers

It was disappointing to see Texas Attorney General Ken Paxton yesterday join a group of anti-business Attorneys General in the multistate lawsuit challenging the merger of Sprint and T-Mobile. Over the past year, NTU has issued statements in support of the merger urging lawmakers, the Federal Communications Commission (FCC) and the U.S. Justice Department to consider the merger’s benefits to consumers and taxpayers. This lawsuit stands in the way of the benefits that taxpayers enjoy with a light-touch regulatory approach.

The multistate lawsuit only serves to delay the merger of two companies committed to investing in new 5G technology. The federal government should take an approach that allows for and fosters competition to spur innovation and consumer choice. Combining the forces of Sprint and T-Mobile will ultimately narrow the gap between the industries current top two wireless leaders and the newly formed company. This is exactly the type of competition needed to truly provide more options and choices to consumers.  

In June of last year, NTU Executive Vice President Brandon Arnold issued the following statement about the potential benefits of the merger:

“The joint venture between T-Mobile and Sprint will allow the combined company to increase capital investment in new technology that will accelerate the nationwide rollout of 5G. This will increase offerings to consumers thanks to boosted competition. Additionally, taxpayers at the state and local level could win big as governments become more efficient with services, such as sanitation and traffic management, thanks to 5G technology.”

NTU also filed comments in support of the merger to the FCC.  We were heartened to see the FCC and the Justice Department recently sign off on the merger.