Judge OKs T-Mobile/Sprint Merger

• A federal judge on Tuesday ruled in favor of T-Mobile‘s proposed takeover of Sprint in a deal that will combine the country’s third- and fourth-largest wireless carriers and thus, create a new telecommunications giant to take on AT&T and Verizon. That’s the word from The New York Times and numerous other sources.

The decision, by Judge Victor Marrero of the United States District Court in Manhattan, concluded an unusual suit filed last June by attorneys general from 13 states and the District of Columbia after regulators at the Department of Justice and the FCC had approved the deal. The states had argued that the merger of T-Mobile and Sprint would reduce competition in the telecommunications industry, lead to higher cellphone bills and place a financial burden on lower-income customers. T-Mobile and Sprint said they do not plan to raise prices.

This transaction will create a new carrier — to be called T-Mobile — with more than 100 million users. After the merger is final, the majority of Sprint customers will eventually end up with T-Mobile plans, while customers of Sprint’s prepaid brands, including Boost Mobile, Virgin Mobile and Sprint prepaid, will become Dish Network customers. Confused yet? The companies expect to close the transaction by April 1. Shares in Sprint jumped more than 70 percent in early trading on Tuesday, while T-Mobile shares rose 10 percent.

“Today was a huge victory for this merger,” John Legere, CEO of T-Mobile, said in a statement. “We are FINALLY able to focus on the last steps to get this merger done!” Known for his exuberant and often pugnacious leadership style, Legere used the court decision to call out his rivals, AT&T and Verizon, as he later tweeted, “Look out Dumb, Dumber and Big Cable — we’re bringing the competition to YOU through #NewTMobile.”