The Federal Communications Commission on Tuesday
approved the merger of T-Mobile USA with
MetroPCS, a $ 1.5 billion, combining two losers in a stronger rival to wireless
giants Verizon Wireless and AT & T.The FCC said the deal is good for consumers because it would accelerate the pace of investment in telecommunications and combined, the companies would be a stronger alternative to the larger companies.
The Justice Department on Tuesday confirmed separately that also approved the deal, which combines the nation's mobile phone operators and fifth-quarter amid growing concern that the nation smartphone-dependent nation has faced increasing bills cellular phone due to reduced competition.
Justice said the companies do not compete directly with each other and in most consumers MetroPCS metropolitan markets have sufficient alternatives to choose from.
"Today's action will benefit millions of American consumers and help the U.S. maintain global leadership in mobile telephony has recovered in recent years," said FCC Chairman Julius Genachowski said in a statement.
The agreement must still be approved by the Committee on Foreign Investment in the United States because T-Mobile is owned by Deutsche Telekom. However, the merger is expected to be blessed by U.S. officials’ desire for greater competition in the mobile market $ 178 billion.
Under terms of the agreement, Deutsche Telekom will pay Metro PCS $ 1.5 billion in cash for a 74 percent stake in the company, whose prepaid phones have become popular among customers in urban and low-income. The combined company will have about 43 million subscribers.
The companies argued to regulators that combine its wireless waves together to create stronger networks that reach more Americans. Some have criticized MetroPCS shareholders agreement and how it could hurt their investments. The Communications Workers of America union fears that the transaction will lead to job losses.
MetroPCS shareholders will vote April 12 on the merger.
The deal is the latest in a wild ride by Deutsche Telekom T-Mobile, a company based in Kirkland, Washington, who has struggled to get the best devices and get high quality first waves engulfed by Verizon and AT & T in the spectrum auctions.
U.S. officials rejected AT & T merger with T-Mobile in late 2011. That agreement, regulators said, would industry leader AT & T very large recall of a rival rudimentary usually provide more affordable service plans.
Genachowski has accredited the FCC and Justice Department's decision to reject the previous attempt to merge T-Mobile AT & T as a crucial decision for the telecommunications market. They have insisted that their smaller rivals should be encouraged to challenge the dominance of Verizon Wireless and AT & T, which has about six in 10 mobile subscriptions.
Competition in the wireless industry has become a major problem, largely driven by advocacy groups say consumers’ mobile device users are charged with growing wireless bills, data caps and congested networks.
The FCC auction design a wireless waves over the next year, and some public interest advocates have called for limits on the amount of spectrum Verizon Wireless and AT & T should be able to buy.
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