T-Mobile and Sprint may have to create spinoff carrier to get approved merger

T-Mobile and Sprint still have not sealed the deal for a possible merger, but not for the lack of trial – regulatory regulator approval is the last major obstacle. T-Mobile has already promised not to raise prices for some years if the deal is approved, but the US Department of Justice is still not on board. Apparently, the Justice Department will combine T-Mobile / Sprint to create a new fourth operator, with its own dedicated network.

According to Bloomberg, officials of the top justice ministry that T-Mobile and Sprint will create a full-fledged national carrier for approval of the merger. The new carrier would not be an NVMO renting T-Mobile's network, either; It would be its own independent network with its own infrastructure. In other words, a new competitor will be created to fill Sprint's current role.

The new carrier would resolve the Justice Department's main complaints at the merger – that it would reduce the number of large US carriers to only three – but T-Mobile and Sprint cannot accept it. After all, the new competitor can damage the merged carrier's future profits.