UPDATE 5-Ten U.S. states sue to stop Sprint-T-Mobile deal, saying consumers will be hurt [Reuters]
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Source: Reuters
Ten U.S. states sue to stop Sprint-T-Mobile deal, saying consumers will be hurt WASHINGTON (Reuters) - Ten states led by New York and California filed a lawsuit on Tuesday to stop T-Mobile US Inc’s $26 billion purchase of Sprint Corp, warning that consumer prices will jump due to reduced competition. The complaint comes as the U.S. Justice Department is close to making a final decision on the merger, which would reduce the number of nationwide wireless carriers to three from four. The all-Democratic attorneys general from the 10 states, including Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia and Wisconsin, say the reduced competition would cost Sprint and T-Mobile subscribers more than $4.5 billion annually, according to the complaint. “When it comes to corporate power, bigger is not always better,” New York Attorney General Letitia James said at a news conference. “To many upstate New Yorkers, (the carriers) still struggle with 3G,” she sa
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