Ten state attorney generals, including those from New York and California, filed a lawsuit yesterday to prevent T-Mobile US from acquiring Sprint Corporation for $26.5 billion, voicing their concern that consumer prices will rise if the competition drops.
The state attorney generals said that the merger deal between the two companies would cut down the competition and cause mobile phone services to rise. The merger would also lower the number of US wireless carriers from 4 to 3.
According to the state attorney generals, the deal would cost Sprint and T-Mobile users around $4.5 billion on a yearly basis.
“When it comes to corporate power, bigger is not always better,” Letitia James, New York Attorney General. “To many upstate New Yorkers, (the carriers) still struggle with 3G,” she added.