New York Attorney General Letitia James said Sunday that the state will not appeal the decision of a local federal judge who approved the merger between two of the largest mobile phone operators in the United States, T-Mobile and Sprint.
“Instead, we look forward to working with all parties to ensure that consumers get the best possible price and service, that networks are built throughout our state, and that high-paying jobs are created,” she said in a statement.
New York and California led a 13-state legal action in June 2019 that sought to block the merger of these companies on the grounds that it would hurt thousands of consumers because of less competition and leave thousands of people unemployed.
On February 11th, federal judge Victor Marrero, from the Southern District of New York, gave the final go-ahead to the merger of T-Mobile and Sprint, the third and fourth largest wireless providers in the United States, which will allow the birth of a telecommunications giant capable of competing with AT&T and Verizon.
According to the federal magistrate, the merger agreement does not significantly diminish competition, bypassing the complaints of the 13 states that saw problems in their territories, fearing a price increase.
Marrero also rejected in his decision an argument raised by prosecutors that a struggling Sprint, without this agreement, could continue to compete.
The merger agreement is worth $26.5 billion and was reached two years ago after initial approval by the Federal Communications Commission and the U.S. Department of Justice.
The New York attorney also said today that the state is pleased that the process “has generated commitments from T-Mobile to create jobs in Rochester and participate in strong national diversity initiatives that will connect our communities to good jobs and technology”.
“We are committed to continuing the fight for accessibility and affordability for all New York’s mobile customers,” the statement said.
T-Mobile and Sprint have maintained since the merger was announced that the agreement would create competition, lower prices, create jobs and allow the combined company to build a strong 5G network.
Following the merger, the telecommunications map is being redrawn in the United States with three leading wireless network operators: Verizon, AT&T and the new T-Mobile.