T-Mobile, Sprint took a risk by finishing merger without Calif. approval
California agency says merger must stop—carriers say the state has no authority. …
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California state regulators are trying to hold up the T-Mobile/Sprint merger, saying the companies don’t yet have approval to combine their operations in the state.
T-Mobile and Sprint announced yesterday that the merger is a done deal and that the two companies are now one. But while the companies had almost all approvals from government authorities, they have not yet gotten the expected approval from the California Public Utilities Commission (CPUC). The CPUC is scheduled to vote on the merger approval and related conditions on April 16.
In response to yesterday’s T-Mobile/Sprint announcement, the CPUC issued a ruling that says the companies “shall not begin merger of their California operations until after the CPUC issues a final decision on the pending applications.”
We contacted T-Mobile today about yesterday’s CPUC ruling and will update this article if we get a response.
The state Public Utilities Code prevents companies from merging their California operations without approval, the CPUC order said. “Both Joint Applicants, T-Mobile and Sprint, have California subsidiaries that are public utility telephone corporations under state law, and subject to the jurisdiction of this agency. The merger of the companies’ operations in California is therefore subject to CPUC approval,” the order said.
But T-Mobile and Sprint argue that the CPUC does not have jurisdiction over wireless transactions and that the merger can be completed without the agency’s approval. T-Mobile and Sprint previously received approval from the Federal Communications Commission and <a
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