California AG Announces Settlement Agreement with T-Mobile and Sprint

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The California Attorney General Xavier Becerra has announced a settlement agreement with the proposed merging parties, T-Mobile and Sprint, resolving California’s challenge to the proposed merger. The proposed settlement agreement requires a series of commitments to be made by the proposed merged company, New T-Mobile, in exchange for California AG Becerra agreeing not to appeal the judgement of the Southern District of New York District Court, which approved the merger. The settlement includes protections for California’s low-income subscribers, creation of new jobs, job protection for current Sprint and T-Mobile employees, and an extension of access to underserved communities. The settlement also requires New T-Mobile to reimburse California and the other states in the multi state coalition up to $15 million for the costs of litigation and investigation in challenging the merger. The other coalition states are expected to sign onto this proposed settlement. The proposed merger remains subject to the approval of the California Public Utilities Commission (CPUC). The CPUC recently released a draft order approving the deal. The CPUC is expected to vote on its proposed order on April 16.

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