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National Wireless Independent Dealer Association

Merger Likely to NOT Go Through?

According to an article on Seeking Alpha (link below), one analyst expects “that a federal judge will block the proposed merger of T-Mobile and Sprint  giving that prospect a 60% likelihood”.

“After watching the witnesses, evidence, and Judge Marrero’s questions, we continue to believe the state AGs are likely to prevail,” the firm says, adding it’s not likely now for the companies to settle.

A ruling is expected in February.

The analyst says the states likely met their burden of showing the merger is anticompetitive by noting the high concentration of the market, And, the judge indicated he didn’t accept T-Mobile’s stance that MVNOs should be considered competitors to AT&T, Verizon and the two rivals.

The Analyst also said he doesn’t believe the judge was convinced that Dish can replace Sprint as a fourth national competitor; Dish will need to take four years to cover 70% of the U.S. population, and it would be much smaller than Sprint is today for some time.

Read the entire article here.

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