US Federal Communications Commission (FCC) chief Ajit Pai threw his support behind a proposed merger between T-Mobile US and Sprint, citing commitments the pair made to expand rural coverage and address competitive concerns as decisive factors.
“I believe that this transaction is in the public interest and intend to recommend to my colleagues that the FCC approve it. This is a unique opportunity to speed up the deployment of 5G throughout the United States and bring much faster mobile broadband to rural Americans. We should seize this opportunity,” he said in a statement.
Pai added he intends to present the other members of the FCC with a draft order to that effect in the coming weeks.
The announcement came as T-Mobile US and Sprint revealed plans to sell the latter’s Boost Mobile prepaid unit after critics of the deal raised concerns about how it would impact competition in the segment.
In a filing with the FCC, the pair also reiterated a series of three- and six-year commitments including plans to build a nationwide 5G network; expand rural coverage; compete in the home broadband market; honour current MVNO agreements (including a Sprint deal with Altice); and maintain current mobile pricing for consumers for three years.
They also outlined a verification and enforcement process to ensure those promises are kept and agreed to pay penalties of up to $2.4 billion per year for missed deadlines.
Pai said the latter will “create a powerful incentive for the companies to meet their commitments on time”.
The deal is also awaiting approval from the Department of Justice.
