Colorado among states suing to stop $26.5 billion Sprint-T-Mobile deal

New York State Attorney General Letitia James speaks at a news conference in New York

And reiterating that point, the general counsel for the Rural Wireless Association, Carri Bennet, said in a statement: "This merger is bad for competition, and it is bad for consumers, especially those living in or traveling through rural areas, who will experience fewer choices, price increases, and substandard service".

And now, according to Bloomberg, state attorneys general from nine states and the District of Columbia (all Democrats) filed a lawsuit in ny today seeking to block the transaction. In February, nine Senate Democrats signed a letter addressed to Federal Communications Commission chairman Ajit Pai urging the agency to block the deal, writing that the merger is "likely to raise prices for consumers, harm workers, stifle competition, exacerbate the digital divide, and undermine innovation".

T-Mobile declined comment to the Associated Press, while Sprint and the Justice Department did not immediately respond to requests for comment. That network will, they promised, also include coverage for some rural Americans, and they said the new company will offer an in-home broadband product. They all also said they were concerned that the U.S.is heading toward undoing its recent gains in cleaner air and water.

"Actual and potential competition between Sprint and T-Mobile will be eliminated", the complaint says. But the merger would put an end to that fierce competition, which has delivered so many benefits to consumers.

The attorneys general said that the companies have yet to "provide plans to build any new cell sites in areas that would not otherwise be served by either T-Mobile or Sprint". Even if the Justice Department eventually gives the deal its blessing, a federal judge could side with the states and prevent the merger.

T-Mobile and Sprint's merger may have hit another government snag.

Reuters first reported that the ten attorneys general were looking to block the deal.

If the states' lawsuit goes forward, the courts would have the last say, not the Justice Department, Blair Levin, an analyst with New Street Research, said in a note on Tuesday.

The two companies have been in regular contact with regulators as they lobby for approval.

While Pai has blessed the merger, it has not yet formally been approved by the FCC. The other two Republican commissioners indicated they would join him.

The same thing happens again later: "Internal documents reveal that for several years, Deutsche Telekom AG and T-Mobile have believed that moving from four national carriers to three would be '*********,' and facilitate a '*************'".

But public-interest advocates said these conditions did not address the deal's main criticisms - higher prices in the long run and less wireless competition- and would be hard for regulators to enforce. Consumer advocacy groups have voiced their disagreement with the deal. It's unclear how Justice Department antitrust chief Makan Delrahim will decide, but the antitrust division staff has reportedly recommended that the merger be blocked.

"When it comes to corporate power, bigger isn't always better", James said in an announcement of the lawsuit. So with T-Mobile (TMUS) now trading at $75.35, Sprint's stock (S) should be closer to $7.73 than the current $6.58 if investors were 100% confident that the deal is going to go through.

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