US regulators gave approval Tuesday for a
proposed merger between wireless carriers T-Mobile and Metro PCS.
The Federal Communications Commission said that the union between
the Deutsche Telekom subsidiary and the regional US provider would
strengthen the US mobile market and "benefit millions of American
consumers and help the US maintain the global leadership in mobile it
has regained in recent years."
The decision coincided with a statement by the Antitrust Division
of the US Department of Justice saying that it was dropping its
investigation of the proposed deal after determining that it was
unlikely to harm consumers or lessen competition.
The approval comes less than two years after regulators nixed a
merger between T-Mobile, the fourth largest US carrier, and AT&T, the
second largest carrier, saying that it would adversely affect
consumers by limiting choice in the market.
The Metro PCS board urged stockholders Tuesday to approve the deal
in a vote scheduled for April 12. Under the terms of the agreement,
Metro PCS shareholders will own 26 per cent of the combined company,
in addition to receiving a cash payout of 1.5 billion dollars. The
new company would have around 42.5 million subscribers.
