The U.S. Department of Justice is investigating the impact of T-Mobile US Inc.'s proposed merger with Sprint Corp. on smaller wireless operators, Reuters reported June 7, citing two sources with knowledge of the matter.
Smaller wireless operators buy network access from the larger providers at wholesale rates to offer packages to their own subscribers, who are often prepaid users or simply budget conscious. The probe is part of the agency's merger approval process.
David Glickman, CEO of the prepaid wireless brands Ultra Mobile and Mint Mobile, confirmed that the DOJ reached out concerning the merger transaction.
A spokesman for the DOJ and a spokeswoman for T-Mobile declined to comment. Sprint did not respond to requests for comment.
