WASHINGTON, May 20 (Xinhua) -- Officials of the U.S. Federal Communications Commission (FCC) expressed Monday their support for the merger between wireless service providers T-Mobile and Sprint, after the companies pledged to prioritize providing services for rural Americans and advancing 5G network deployment.
Pursuing approval for the deal that is valued at 26.5 billion U.S. dollars, T-Mobile and Sprint have committed to deploy a 5G network that covers 97 percent of the U.S. population within three years of the closing of the merger and 99 percent in six years, according to a statement issued by FCC Chairman Ajit Pai.
Pai said in the statement that T-Mobile and Sprint are also committed to ensuring that 85 percent of Americans in rural areas are covered by the 5G network within three years, and 90 percent in six years.
"Two of the FCC's top priorities are closing the digital divide in rural America and advancing United States leadership in 5G, the next generation of wireless connectivity," Pai said. "The commitments made today by T-Mobile and Sprint would substantially advance each of these critical objectives."
The FCC, the statement said, opened a proceeding to consider the transaction on June 15, 2018. "I believe that this transaction is in the public interest and intend to recommend to my colleagues that the FCC approve it," said Pai, who will present a draft order resolving the issue in "the coming weeks."
T-Mobile said in a blogpost on May 8 that with the combined resources of Sprint and T-Mobile, "we can build a network with 15x more capacity by 2024 than Sprint and T-Mobile have combined today."
Sprint, for its part, announced on May 16 that the company's first two 5G devices, LG V50 ThinQ 5G and HTC 5G Hub, will be available on May 31, with pre-order beginning on May 17.
According to Pai, T-Mobile and Sprint have also decided to divest Sprint's Boost Mobile brand. "This sale is designed to address potential competitive issues that have been identified in the prepaid wireless segment," he said.
Meanwhile, the chairman also warned of "serious consequences" the two companies would suffer if they fail to follow through on their commitments to the FCC. The consequences, Pai added, "could include total payments to the U.S. Treasury of billions of dollars."
In a subsequent release posted on the FCC website, FCC Commissioner Brendan Carr announced his support for the merger, citing "increased competition" within the wireless telecommunications sector, as well as the accelerating race toward 5G.
"I support the combination of T-Mobile and Sprint because Americans across the country will see more competition and an accelerated buildout of fast, 5G services," Carr said.
"Today's commitments to bring 5G to rural America are verifiable and enforceable," said the commissioner. "The proposed transaction's investment in rural 5G will help close the digital divide-this FCC's top priority."
Both the FCC and the U.S. Department of Justice must approve the deal in order for it to take effect. The Justice Department's antitrust division has yet to decide whether the companies' pledges are sufficient enough to pave way for the merger, according to a report by Bloomberg news.
