The Attorney General’s office from New York is investigating if and how T-Mobile‘s proposed merger with Sprint might impact the MVNO and prepaid markets. Sprint and T-Mobile separately serve the prepaid space via their own Boost Mobile and MetroPCS brands, respectively, as well as MVNOs, such as Google-run Project Fi.
With reduced competition, the New York attorney general is concerned that the tie-up between the two companies could lead to higher prices for prepaid consumers. Dozens of other states are participating in the probe, says the Wall Street Journal. This investigation mirrors a separate one underway with the U.S. Department of Justice, which has similar concerns.
The $26 billion deal was proposed earlier this year and would see the nation’s third- and fourth-largest carriers become one. Antitrust investigations are normal for such deals. Sprint and T-Mobile defended the deal in front on Congress on Wednesday. The companies insist the deal will create jobs and ensure the combined entity can compete with AT&T and Verizon.
