There have been merging plans underway between Sprint Corp (NYSE:S) and T-Mobile Inc (NASDAQ:TMUS). However, some conditions must be fulfilled before the marriage takes place. On top of the list is how the judge rules out regarding the personality of Charlie Ergen who heads the DISH Network Corp (NASDAQ:DISH).
Details about the possible merger
It is worth noting that this merger would result in the DISH Network taking over the place of Sprint which has been standing in fourth place. That would probably be detrimental to the product consumers. According to the analysts, this would create a monopoly and that would result in customers suffering from inflated product prices.
The coalition of attornies seems quite determined in their string fight against the merger. They plan to go to court and argue that Ergen has a bad reputation for giving false promises to the government. All in all, the judge will have the final say.
This hearing is going to be conducted in a Manhattan federal court set to start on Monday. The AGs say that they will try to show the judge that indeed the billionaire doesn’t deserve to be given that important business space. According to them, allowing this business guru to replace Sprint would spell doom for the thriving industry. This group believes that the judge will see that Ergen is not the kind that plays by set rules or regulations.
Turn of events
At the start of this year, several AGs went to court wanting the judge to stop the exaction of the merger. They defended their claims by arguing that the resulting reduction in the competition wasn’t the best thing. It would mean enslaving the customers with unaffordable prices despite the declining economies.
If the merger takes place, the number of wireless providers in the market will reduce. Eventually, T-Mobile will be expandable making critical business decisions as it pleases. The attorneys don’t want this to happen and have been working around the clock to block such efforts.
The lawyers have been checking out the history of Dish and they believe it is lacking in several aspects. From their findings, the company has never proven any determination to set up a nationwide mobile network.