After T-Mobile expressed its interest to purchase Sprint back in April, the details released about the $26 billion deal appeared so healthy. However, a similar deal was rejected a couple of years ago. President Trump’s officials portrayed less concern about the issue. The integration has, however, faced a lot of backlash and scrutiny in the past few weeks. The Democratic lawmakers who are strongly empowered by the majority of legislators in the House of Representatives have expressed their discontent about the deal.
The consumer advocates in conjunction with the Democrats have noted that the merger of the two firms will possibly lead to elevated prices and loss of jobs for some of American workers. According to a report by newsstandhub.com, the entire deal will draw new wireless corporations into the industry. Over the last ten months, the lawmakers have also raised the alarm about the firm’s lobbying blitz. They pointed out many executive stays at the Trump International Hotel that is based in Washington. Some lawmakers noted that the two firms were attempting to negotiate for favor with President Trump’s administration.
The criticism extended by the lawmakers is expected to be the primary issue during the two House hearings. The first hearing is scheduled to take place this week. Marcelo Claure, the Sprint’s executive Chairman, and John Legere, the chief executive officer at T-Mobile, are expected to have a sitting at the hearing where they are expected to answer tough questions. The endorsement for mergers, especially on telecommunication, is approved by the Federal Communications Commission and the Justice Department. The two bodies have noted that they are almost finalizing their independent investigations on the matter. The leaders heading the agencies were individually appointed by President Donald Trump.
When Legere was interviewed, he noted that the deal was on track. He anticipated that the deal would soon be completed. However, congressional hearings might delay the process due to pressure that is being exerted on the agencies. Additionally, there may be new information that may be uncovered that is hampering the investigations.
Dil Bole Oberoi
