SAN FRANCISCO – The California Public Utilities Commission (CPUC) today approved the merger of Sprint Communications Company and T-Mobile, with extensive conditions to mitigate the potential adverse impacts on competition and to ensure that T-Mobile delivers on its promises to consumers, including requirements for faster speeds, broader coverage, job creation, and offerings for low-income customers.

Section 854 of the Public Utilities Code provides that a merger involving a public utility may not occur without authorization from the CPUC. Today’s Decision finds that the merger between Sprint and T-Mobile would create a new company that would be well-positioned to provide a robust 5G wireless communication service network that can compete with the two larger existing wireless carriers (AT&T and Verizon).

The Decision orders the merged company to implement the following to benefit consumers:

In addition, an independent monitor will be appointed to review compliance with the Decision within 120 days of the merger approval. Both the CPUC and the California Attorney General may take enforcement actions if T-Mobile fails to comply with the conditions of the Decision.

On March 5, 2020, the CPUC received an advisory opinion from the state Attorney General regarding the proposed merger. It concluded that while the anti-competitive effects of the merger outweighed its potential benefits in the state of California, those effects could be mitigated with various types of conditions, as imposed by today’s Decision. The California Attorney General subsequently entered a settlement agreement with Sprint and T-Mobile resolving its objections to the merger.

CPUC Commissioner Clifford Rechtschaffen noted, “A critical part of this deal is the benefits it provides for our neediest consumers, by ensuring that T-Mobile continues LifeLine service and enrolls at least 300,000 new LifeLine customers. Our enforcement provisions are particularly strong and both the CPUC and the California Attorney General may enforce the CPUC’s conditions of approval.”

Added Commissioner Genevieve Shiroma, “Continuity of phone service for California LifeLine customers is crucial, especially during these unprecedented times with families in need. I appreciate the commitment in this merger to ensure that continuity and that consumer handsets will be compatible with the new network.”

CPUC