US Justice Department career staff would reportedly oppose T-Mobile-Sprint merger

US Justice Department career staff would reportedly oppose T-Mobile-Sprint merger

Reuters: DOJ career staff likely to urge rejection of Sprint/T-Mobile

The U.S. Department of Justice career staff who do most of the investigating into whether or not a T-Mobile-Sprint merger will harm customers will probably recommend that the deal be stopped.

Amid all of the recent rumors that a T-Mobile-Sprint merger is coming soon, many have wondered how regulators would react to such a deal. That's according to three sources speaking to Reuters.

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Although only a fraction of mergers are blocked by antitrust regulators - and the Federal Communications Commission recently deemed the US mobile market "competitive" - critics warned that a combination of Sprint and T-Mobile could stifle competition and curb the significant price reductions seen in recent months.

Given T-Mobiles track record in the U.S., taking away so many of Verizon and AT&Ts customers, the sources say they would like to see T-Mobile continue taking customers from the larger carriers, according to the report.

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T-Mobile and Sprint have been said to be discussing final negotiations this month and announce their merger at the end of October during their Q3 earnings call.

Nothing is official at this point, but this report is some good news for folks that'd prefer T-Mobile and Sprint stay separate. Sprint and T-Mobile would also account for the majority of the prepaid cellular market if combined, which could affect prices for customers that tend to be lower income or have poor credit.

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