US wireless carriers T-Mobile US and Sprint are expected to urge a federal judge on Wednesday to let them proceed with their $26.5 billion merger, as a group of states argues the deal violates federal antitrust laws.
The states filed a lawsuit in June in a bid to block the merger, saying it would lead to higher prices for consumers. T-Mobile and Sprint contend that the merger would enable the combined company to compete more effectively with dominant carriers Verizon and AT&T.
US District Court Judge Victor Marrero, who presided over a two-week trial last month in federal court in Manhattan, began hearing closing arguments in the case on Wednesday, reported Reuters.
“I’m here speaking on behalf of 130 million consumers who live in these states,” Glenn Pomerantz, a lawyer for the states, said at the outset of his argument. “If this merger goes forward, they’re at risk for paying billions of dollars more every single yearfor those services.”
The US Justice Department approved the deal in July after the carriers agreed to sell some assets to satellite provider Dish Network, which would create its own cellular network to ensure that there would still be four competitors in the market. The Federal Communications Commission signed off on the deal in October.
Executives from the companies, including outspoken T-Mobile Chief Executive John Legere, testified during the trial that Sprint’s business was deteriorating and would not survive if it did not merge with T-Mobile.
