Tuesday, January 7, 2020

Analysts Are All Over The Place on T-Mobile-Sprint Merger

Closing arguments are scheduled to take place on January 15, with a decision to follow next month in the state attorneys general case against the T-Mobile-Sprint merger. T-Mobile is hoping to obtain Sprint's mid-band 2.5 GHz spectrum so that it can increase the coverage and speed of its nationwide 5G network.
While some Wall Street analysts believe the judge will approve the deal, at least one prominent analyst does not, reports Phone Arena. Cowen & Co. analyst Paul Gallant believes there’s a 60 percent chance that Judge Victor Marrero will block the transaction. The “states likely raised enough questions about [the] Dish fix and merger synergies to prevent Marrero from accepting them,” Gallant wrote in a client note.

The 13 state AGs and the one from the District of Columbia voiced concern that cutting the number of major wireless carriers from four to three will result in higher prices for consumers. Though Dish Network is setting up to become a nationwide wireless carrier, the state AGs argue that the satellite television firm has never sold wireless service before and cannot be counted on to replace Sprint, notes Phone ArenaContinue Reading

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