Attorney General Raoul Announces Settlement With T-mobile And Sprint In Merger Lawsuit

Chicago – Attorney General Kwame Raoul today announced a settlement in the lawsuit challenging the merger of T-Mobile and Sprint. The settlement includes terms to protect low-income subscribers, extend access to underserved communities, and protect current T-Mobile and Sprint employees.

“I challenged T-Mobile’s merger with Sprint to protect Illinois consumers from the risks that come with decreased competition, including unfair prices,” Raoul said. “Although the merger is moving forward, today’s settlement ensures protections for vulnerable consumers and job security for the companies’ employees, as well as an important commitment to prioritize diversity and inclusion within the new, merged company.”

As part of the settlement, the merged company has agreed to:

• Make low-cost plans available for at least five years, including a plan offering 2 GB of high-speed data at $15 per month and 5 GB of high speed data at $25 per month.
• Extend the three-year agreement it made with the Federal Communications Commission to a five-year commitment to offer the same or better plans offered as of Feb. 4, 2019.
• Offer 100 GB of no-cost broadband internet service per year for five years and provide up to 2 million free mobile Wi-Fi hotspot devices to qualifying low-income households not currently connected to broadband nationwide, as well as the option to purchase select Wi-Fi enabled tablets at the company’s cost for each qualifying household.
• Protect jobs by offering T-Mobile and Sprint employees in good standing at Illinois retail locations an offer of substantially similar employment in the new company.
• Waive its non-compete agreements with non-executive employees who leave either company to join Dish Network’s new mobile operations.
• Commit to increase diversity and inclusion initiatives.
• Reimburse Illinois and other coalition states up to $15 million for the costs of the investigation and litigation challenging the merger.

Raoul joined a coalition of 16 attorneys general in a lawsuit challenging the merger of T-Mobile and Sprint in September 2019. The lawsuit, filed in United States District Court for the Southern District of New York, alleged that the merger of two of the four national mobile network operators would harm mobile subscribers nationwide by reducing access to affordable, reliable wireless service, hitting lower-income and minority communities particularly hard. As a result of this settlement, Illinois will not appeal the decision of that court.

Bureau Chief Blake Harrop and Assistant Attorney General Joseph Chervin handled the case for Raoul’s Antitrust Bureau, along with Division Chief Christopher Wells, who handled the case for Raoul’s Public Interest Division.

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