The next generation of wireless technology, known as 5G, is such a step forward that everything is about to be changed – perhaps even the US government's view of a corporate merger that it has met before.
T-Mobile US Inc. and Sprint Corp. certainly hope so.
The companies cited the tremendous cost of building a 5G network of ultra-fast, ubiquitous connections as a reason to authorize T-Mobile to buy a Sprint deal worth $ 26.5 billion on Sunday. They make the argument a key piece of their case for the regulators, who reject a previous attempt by the two companies to merge.
"Global tech leadership for the next decade is at stake," said John Legere, T-Mobile's chief executive. Www.germnews.de/archive/gn/1
Wireless providers say 5G – so named because it's the fifth generation of mobile networks – will make millions of devices from robots to devices at a speed 10 to 100 times faster than current technology. It could revolutionize other industries by providing self-driving cars, remotely controlled medicine, rapid downloads of (19659007) CEO of T-Mobile sees three reasons for Sprint deal approval (video)
It will not be cheap US mobile operators are e According to a report by Accenture, commissioned by CTIA, the trading group that includes Sprint, T-Mobile, and the two largest companies as members, has invested US $ 275 billion over seven years on behalf of Accenture. Mobile Operators, AT & T Inc. and Verizon Communications Inc.
The idea of taking global leadership on 5G is a potential treasure trove for the administration of President Donald Trump who has taken steps in order to maintain American competitiveness in wireless technology. It has moved to stem China's advances in US communications technology and even suggested creating the idea of a national, government-built 5G network to take over leadership of the emerging technology.
In the US Federal Communications Commission, which has to approve the deal, Chairman Ajit Pai has set up a full regulatory framework under heading "Leading the World Towards a 5G Future." in the public interest. "
Earlier: Trump Allies Scorn Plan for Federal 5G:" We are not Venezuela "
" The rise in state interest in creating an attractive investment climate for the 5G deployment improves the chances "for T-Mobils buying Sprint, Blair Levin, a Washington-based New Street Research consultant, said in a March 15 note
antitrust authorities at the Justice Department, led by Assistant Attorney General M Akan Delrahim, will assess whether a deal will compete
Two Democrats in the House of Representatives called a Monday hearing on the deal, saying it would cause ripple effects for all cell phone users, and the request came from MP Frank Pallone of New Jersey, the country's top Democrat Energy and Trade Committees, and MP Mike Doyle of Pennsylvania, the top Democrat in the Communications Subcommittee.
Washington Merger Tour [1965901LegeresaidheandCEOofSprintMarceloClaurewouldcometoWashingtononTuesday"totalktoanyonewhowouldliketohearthedetails"Mergingcompaniesoftenmeetwithregulatorstovoteforadvertisetheiroffersbeforesubmittingtherequiredpaperwork] During the Obama administration, the Department of Justice and the FCC rejected a previous merger attempt by Sprint and T-Mobile, arguing that four national competitors would be needed to ensure competition. Pai did not insist on four and said he remains open on the number of major players in the US mobile market.
BI: $ 26.5 Billion T-Mobile Sprint Deal faces Rough Regulatory Road
The promise of 5G technology was little mentioned when supervisors prevented the Sprint and T-Mobile merger attempt in 2014. Since then, technology has become a refrain in FCC submissions, and companies say they are about to provide services. Verizon, for example, plans to test 5G in 11 markets this year and works with equipment partners including Ericsson AB and Samsung Electronics Co.
It is not expected that the full 5G service will be available by 2020 Trade is available.
The new T-Mobile will spend about $ 40 billion over 3 years on network integration, expansion and new 5G construction, executives said when they presented the deal on Sunday. This will create thousands of new jobs, especially in rural communities, according to the companies. In the last three years, Sprint and T-Mobile spent $ 31.4 billion on capital expenditures
Not everyone is convinced.
"This is completely unfounded," says Gigi Sohn of the Georgetown Law Institute for Technology Law & Policy and a former FCC official, said in an interview. "They will promise that the sun, the moon, and the stars will play the number one role in 5G at the request of the Trump administration.
Doubt affects the market
The promise of 5G may not be enough from a deal before regulators who can frown on the loss of competition from the combination of two of the top 4 mobile operators. Doubts helped belittle the shares of both companies on Monday.
Sprint fought debts and sold bonds on the junk market. While there have been improvements in areas such as subscriber numbers, the company has incurred a decade of losses. After slashing spending on the network for two years, Sprint lags behind competitors in most areas of the country.
Legere says that will change.
"We will have an impact on America," Legere said. Competitors like Verizon, AT & T and Comcast Corp., who have started offering wireless service, will have to respond, he said. "We will bring the rest of the players who fight for the prize and scream at the price that is American leadership" in fifth-generation wireless networks.
The dispute was received skeptically by Tom Wheeler, former chairman of the Democratic FCC. 19659038] played a role in ending the Merger-Dalliance 2014 company. Officials called T-Mobile's role as a disruptive price-cutting competitor, which remained independent because the government prevented AT & T from buying it.
"They suggest sacrificing the well-known consumer benefits of lower prices and extended services for the unknown of 5G." Wheeler said in an e-mail.