US judge approves Sprint-T-Mobile merger

[NEW YORK] A federal judge on Tuesday approved the merger of Sprint and T-Mobile, US media reported, clearing the way for the number three and four US mobile phone companies to combine.

Federal Communications Commission Chairman Ajit Pai, who has backed the deal, applauded a ruling from US District Judge Victor Marrero that held the combination would not significantly harm competition.

"The T-Mobile-Sprint merger will help close the digital divide and secure United States leadership in 5G," said Mr Pai, pointing to a pledge from T-Mobile to expand telecom services to rural areas in the United States.

Critics had lambasted the deal and said the removal of a leading provider would ultimately lead to higher prices.

Backers of the deal said combining T-Mobile and Sprint will create a strong number three US wireless carrier behind Verizon and AT&T, with the resources to invest in 5G, or fifth-generation, networks.

AFP