T-Mobile US wins game of national champions

NEW YORK: Its $26bn merger with rival telecom Sprint is likely to be approved.

There was little reason to block it. Still, taken with a US ban on China's Huawei and last year's nixing of a bid for chipmaker Qualcomm, it's clear keeping 5G in American hands is now a national priority.

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CONTEXT NEWS

US Federal Communications Commission Chair Ajit Pai is recommending a set of concessions proposed by T-Mobile US and Sprint in order to win approval for their $26 billion merger, the agency said on May 20.

The full FCC panel must vote to approve or reject the deal. The US Department of Justice also has to approve the deal.

The two telecoms operators committed to deploying a 5G network that would cover 97pc of America's population within three years of closing the deal and 99pc of the population within six years, if their merger is allowed to proceed.

In addition to their prior commitment not to raise prices for three years, T-Mobile and Sprint have agreed to divest its Boost Mobile, Sprint's largest pre-paid brand.

If the merged company misses its six-year buildout it will be subject to a maximum $2.4 billion fine that is repeatable.

President Donald Trump declared a national emergency on May 15 and barred American companies from using telecommunications equipment made by firms posing a national security risk. Chinese network maker Huawei is on the list.