Colorado drops opposition to T-Mobile, Sprint deal on jobs, broadband pledge

News Wireless United States 23 OCT 2019
Colorado drops opposition to T-Mobile, Sprint deal on jobs, broadband pledge

The state of Colorado's attorney general has dropped its opposition to T-Mobile US's takeover of Sprint after the companies agreed to bring more jobs and services to the state. This includes a pledge by Dish Network, which is acquiring assets from T-Mobile and Sprint, to locate the headquarters for its new mobile business in Colorado. 

Dish already has a large presence in the state and said it would bring at least 2,000 additional full-time jobs to Colorado under the deal. T-Mobile said it will significantly build out a statewide 5G network, particularly in rural areas. The companies agree to pay up to a total of USD 100 million if they fail to meet these commitments.

Because of the expected benefits to Coloradans from these commitments, the Attorney General’s Office said it will end its participation in a multi-state lawsuit it joined in June to halt the T-Mobile and Sprint merger. The FCC and US Justice Department recently approved the USD 26.5 billion merger, in which Dish agreed to acquire the companies’ prepaid businesses and get access to T-Mobile’s network, making it the fourth network operator in the US. 

Under the state deal, Colorado will be among the first ten states where Dish plans to deploy 5G broadband services by 2023. Dish faces up to USD 20 million in penalties if it does not meet its commitments to the state.

T-Mobile agreed to provide 100 Mbps over 5G to at least 68 percent of the Colorado population within three years of closing the merger and cover 92 percent within six years. At least 60 percent of the rural population must be able to access 100 Mbps or higher within three years and 74 percent of rural residents within six years. 

The operator also agreed to maintain low-cost service plans for at least five years. These include unlimited calls and texts plus 2 GB of data for USD 15 or less, and unlimited calls and texts and 5 GB for USD 25 or less. 

 

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