U.S. Senator Amy Klobuchar (D-MN), U.S. Senator Al Franken (D-MN), and seven other senators have written a letter urging the FCC and DOJ to investigate the potential impact of a T-Mobile-Sprint merger. Informal discussions between SoftBank and Deutsche Telekom (Sprint and T-Mobile's biggest shareholders respectively) began in May, and a new report suggests that we could see a merger between the two carriers by the end of October.
Bloomberg is reporting that T-Mobile and Sprint are now in the final stages of merger talks and an announcement could be made when both wireless carriers announce their quarterly earnings at the end of October.
The talks are close to wrapping up, according to Bloomberg, which pegs the announcement by the end of the month, likely during one of their earnings reports.
A merger would bring together the third (T-Mobile) and fourth (Sprint) largest wireless carriers in the nation, creating a stronger competitor to Verizon Wireless and AT&T. "A combination of T-Mobile and Sprint could raise significant antitrust issues and could harm consumers", Klobuchar explains.
The deal's not expected to have a traditional breakup fee, Bloomberg says, which cuts risk in case the merger is rejected on regulatory grounds (similar to when Comcast walked away from Time Warner Cable after regulator pressures).
If the two carriers were to merge, that means the number of major wireless carriers in the USA would shrink from four to three.