The Federal Communications Commission has indicated that it will be pausing its self-imposed 180-day timeline for reviewing T-Mobile’s takeover of smaller rival Sprint, noting that it needs more time to study some large and complex information provided by the two carriers. While this could effectively delay a potential merger, it indicates that the agency is closely considering the case, unlike previous attempts which were quickly rebuffed by regulators.
Our interactive dashboard on what’s driving T-Mobile’s valuation details our expectations for the company through the rest of the year and the factors driving our valuation estimate.
Why It Could Take Time To Review The Deal
The proposed deal is complex and very high-profile, considering that it involves subsidiaries of two international corporations, Deutsche Telekom of Germany and Softbank of Japan, and also because of its direct impact on U.S. households. The two carriers recently submitted a significantly revised network engineering model to the FCC, and it could take time for the agency to fully review these files. Additionally, T-Mobile recently indicated that it intends to submit additional economic models to support its application. While this could delay the merger, which was first announced in April, the markets are likely to have factored this in, as both companies have been indicating that the deal is unlikely to close before 2019. The FCC began its formal review about 60 days ago.
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