Additionally, the states argued that the merger between the two mobile network operators is part of a long-term plan to increase profits by lessening competition.
T-Mobile’s parent company, Deutsche Telekom AG (OTCMKTS: DTEGY) believes that it will increase its profitability by reducing the number of mobile network operators in the United States.
Sprint and T-Mobile merger will lead to higher prices and fewer choices for consumers
In a statement, Becerra said, “Although T-Mobile and Sprint may be promising faster, better, and cheaper service with this merger, the evidence weighs against it. This merger would hurt the most vulnerable Californians and result in a compressed market with fewer choices and higher prices.”
On the other hand, James said, “When it comes to corporate power, bigger isn’t always better. The T-Mobile and Sprint merger would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans, but would particularly affect lower-income and minority communities here in New York and in urban areas across the country.”