Following the settlement, the AG’s office in California said it will not appeal against the verdict of Federal Court that approves the merger of T-Mobile Us Inc (NASDAQ:TMUS) with Sprint Corp (NYSE:S). According to the settlement with CA, the combined entity- T-Mobile would create new 1,000 jobs in the state. It will also offer low-cost mobile plans that comprise 5GB for a monthly fee of $25, and 2GB for a monthly fee of $15. The company will also establish Wi-Fi Hotspot for 10 million low-income households. It will also provide free 100GB of high-speed internet to consumers among the low-income category.

Protection for vulnerable consumers

Xavier Becerra, Attorney General of California, said the coalition challenged the merger of Sprint with T-Mobile on fears that it would prevent competition, and the consumers would be forced to pay higher charges for the internet. He said today’s settlement with T-Mobile paves the way for the creation of new jobs and easy access to the internet for rural and underserved communities.

CPUC issues a proposal

CPUC (California Public Utilities Commission) on Wednesday said it would issue a proposal favoring the marriage of T-Mobile with Sprint subject to certain conditions. The announcement comes at a time when the AG of CA reached an accord with T-Mobile.

As per the terms of the agreement, 99% of the rural population in the state would get access to 5G service with speeds of 100 Mbps in the next six years. It will also ensure internet speeds of a minimum of 50 Mbps to 94% of the rural population in California. The new entity would also need to provide a power backup for 72 hours to ensure internet connectivity in case of emergency or public power utility is switched off. A new independent committee would be in place to ensure compliance. According to a communiqué from CPUC, the potential benefits offered by the merger of Sprint and T-Mobile outweigh anticompetitive effects.

Letitia James, Attorney General of New York, said her office will not appeal against the merger verdict. However, Becerra said his legal team is reviewing the options. Following the verdict and settlements with CA, the merger expects to complete before April 1, 2020.