Mobile Sprint merger review delayed by FCC

Sprint T Mobile CEOs on the odds of merger approval

The FCC is pausing its informal 180-day "shot clock" for the merger as T-Mobile has submitted substantially revised information to the Commission.

The Federal Communications Commission issued a letter on Tuesday stating that it needs more time to review the proposed merger between the two telecommunication companies.

"Considering the complexity and potential importance of these newly-provided and expected models, it is appropriate to stop the informal 180-day clock to allow time for their review", officials said in a letter to the two companies.

T-Mobile, the fastest-growing of the four major US wireless companies thanks to low prices and features such as free video, needs approval from the FCC and Justice Department for the Sprint deal.

The merger between the third and fourth largest US wireless carriers seems to be a lock. The FCC points to three separate developments that require more time for review. The new model is significantly larger and more complex than the old one, the FCC explains, and it incorporates new logic, methodologies, facts, and assumptions that are central to the merger's claimed network benefits.

The merger is also under review by the US Department of Justice.

T-Mobile and Sprint have "extended" a network engineering model that was originally submitted as a backup plan.

Further, in an August 29, 2018 ex parte meeting, T-Mobile executives Mike Sievert and Peter Ewens described T-Mobile's reliance on a business model, titled "Build 9, " which apparently provides the financial basis for the projected new network buildout. T-Mobile also provided extra economic modeling that responded in part to petitions to deny the deal. Act Ii Management Lp who had been investing in T Mobile Us Inc for a number of months, seems to be bullish on the $55.87 billion market cap company. "We are confident that this transaction is pro-competitive, good for the country and good for American consumers".

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