Mississippi Attorney General Jim Hood will back out of a suit by several U.S. states against the proposed merger between T-Mobile US Inc. and Sprint Corp., after securing a settlement with the wireless carriers.
As part of the settlement, the combined entity will roll out a 5G network in Mississippi within three years from the deal's closing. The service would initially allow at least 62% of the state's general and rural populations to get download speeds equal to or more than 100 Mbps.
The company also committed, for at least five years, to offer unlimited talk, text and data plans, worth $15 per month for 2 GB of data and $25 per month plan for 5 GB of data. It promised to decrease prices in case of a supply hike, namely when DISH Network Corp. starts offering mobile services.
Furthermore, the merged entity would launch a broadband service to hundreds of thousands of Mississippi residents. It would also open new stores in the state's rural areas, assuring there would be no retail job losses.
"Mississippi is lagging behind with internet deserts across the state. My agreement with T-Mobile will help fill this gap," Hood said Oct. 9.
T-Mobile CEO John Legere welcomed Hood's decision in a tweet.
In the lawsuit, state attorneys general and the District of Columbia alleged that the proposed T-Mobile/Sprint merger would hamper competition and result in higher prices for users. The trial is expected to begin Dec. 9.
The U.S. Department of Justice granted conditional clearance to the deal, following the U.S. Federal Communications Commission Chairman Ajit Pai's recommendation.
