FCC pauses assessment of Lunge and T-Mobile merger

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FCC pauses assessment of Lunge and T-Mobile merger

The Federal Communications Price despatched a letter to Lunge and T-Mobile Tuesday informing the carriers that or not it is pausing the contemporary assessment of their merger.

A business model detailing how the combined firm would provide "financial basis for the projected new network buildup" wasn't submitted until September 5.

Further, in an August 29, 2018 ex parte meeting, T-Mobile executives Mike Sievert and Peter Ewens described T-Mobile's reliance on a business model, titled "Build 9, " which apparently provides the financial basis for the projected new network buildout. The companies submitted their formal merger query of to the FCC in June, wherein they vowed to "suppose a tough, nationwide world-class 5G community and providers and products sooner than in any other case imaginable".

The third- and fourth-largest mobile carriers in the U.S agreed in April to merge in a$26 billion deal and were given a 180-day period by the FCC for the merger to be reviewed.

The FCC said Tuesday it was pausing the review clock - now at Day 55 - because the two companies had submitted new information including a "substantially revised" network engineering model, a new business model and additional economic modeling. The commission said it only received information pertaining to Build 9 on September 5.

The move itself is not a major obstacle for the merger, which needs both the FCC and the Justice Department's approval. Considering the complexity and potential importance of these newly-provided and expected models, it is appropriate to stop the informal 180-day clock to allow time for their review. The Commission will decide whether to extend the deadline for reply comments after receiving the remainder of the Applicants' modelling submissions. "We are confident that this transaction is pro-competitive, good for the country and good for American consumers".

The agency said it would also need time to review additional economic modeling that T-Mobile said it would submit.

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