Colorado became Monday the second state to drop out of an attempt by state attorneys general led by New York and California to stop T-Mobils’ $26 billion merger with Sprint.
Colorado made a contract with T-Mobile and Dish Network, which is buying assets divested from the merger. In the contract, Dish vowed to bring 2,000 jobs to the state, and T-Mobile pledged to deploy the next-gen of wireless 5G across much of Colorado, the state attorney general’s office stated.
Colorado is the second state to defect from the suit to cease the merger. Mississippi stated on Oct. 9 that it might depart from the legal challenge.
This leaves New York, California, and the attorneys general of 13 other states and Washington, D.C., headed to court to fight the businesses when the trial begins on Dec. 9. With Colorado, 13 states now support the intended merger.
Under the Justice Department contract to win an antitrust permit for the merger, the businesses agreed to divest Sprint’s prepaid services, along with Boost Mobile, to Dish, and provide it with access to 20,000 cell sites and hundreds of retail locations. That contract is price at about $5 billion.
T-Mobile chief executive John Legere tweeted that it was “great news” that Colorado would be exempted from the lawsuit.
The lawsuit against Sprint and its parent firm Softbank Group and T-Mobile and its parent Deutsche Telekom argue the contract will result in higher costs for customers.
New York Attorney General Letitia James stated that the pact with Colorado didn’t fix “nationwide harms” caused by the merger of the third and fourth-largest U.S. wireless service providers.