Skip to main content

Colorado is the second state to defect from the lawsuit to stop the merger. Mississippi said on Oct. 9 that it would withdraw from the legal challenge.

Bebeto Matthews/The Associated Press

Colorado became on Monday the second state to drop out of an effort by state attorneys-general led by New York and California to stop T-Mobile U.S. Inc.’s US$26-billion merger with Sprint Corp.

Colorado struck a deal with T-Mobile and Dish Network Corp., which is buying assets divested from the merger. In the deal, Dish pledged to bring 2,000 jobs to the state and T-Mobile pledged to deploy the next generation of wireless 5G across much of Colorado, the state attorney general’s office said in a statement.

Colorado is the second state to defect from the lawsuit to stop the merger. Mississippi said on Oct. 9 that it would withdraw from the legal challenge.

Story continues below advertisement

This leaves New York, California and the attorneys-general of 13 other states and Washington headed to court to fight the companies when the trial begins on Dec. 9. With Colorado, 13 states now support the proposed merger.

Under the Justice Department deal to win antitrust approval for the merger, the companies agreed to divest Sprint’s prepaid businesses, including Boost Mobile, to Dish, and provide it with access to 20,000 cell sites and hundreds of retail locations. That deal is worth about US$5-billion.

T-Mobile CEO John Legere tweeted that it was “great news” that Colorado would drop off the lawsuit. “CO knows that New T-Mobile will create jobs and deliver 5G to rural areas of the state-and beyond!” he tweeted.

The lawsuit against Sprint and its parent company Softbank Group Corp. and T-Mobile and its parent Deutsche Telekom AG argues the deal will lead to higher prices for consumers.

New York Attorney-General Letitia James said that the agreement with Colorado did not fix “nationwide harms” created by the merger of the third and fourth largest U.S. wireless carriers.

“We remain committed to challenging this merger, and have continued to develop strong evidence that it is bad for consumers, bad for workers, and bad for innovation,” she said.

Dish said in a statement that Colorado would be among the first 10 states to get Dish 5G broadband. “Today’s settlement with Colorado positions Dish, a company founded in Colorado, to make a transformative impact on the wireless market,” said Dish chairman Charlie Ergen.

Story continues below advertisement

The deal already has approval from the Justice Department while sources say that the Federal Communications Commission has voted to approve the measure. That approval is expected to be made public this month.

Report an error
Tickers mentioned in this story
Unchecking box will stop auto data updates
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

Cannabis pro newsletter