Wisconsin joins eight other states to try to stop merger of Sprint and T-Mobile

Lawrence Andrea
Milwaukee Journal Sentinel
State Attorney General Josh Kaul speaks during the inauguration for the state's constitutional officers at the Capitol in Madison, Wis.

MADISON - Wisconsin joined a multistate lawsuit Tuesday to try to block the merger of two telecommunications companies in an effort to keep the price of cell service in check.

Wisconsin Attorney General Josh Kaul joined eight states and the District of Columbia in the lawsuit that seeks to block the merger of T-Mobile and Sprint. The suit alleges that the merger of two of the nation's four major mobile network operators would deprive consumers of the benefits of competition and drive up the price of cell service. 

“Maintaining strong competition helps keep prices low,” the Democratic attorney general said in a news release from the Wisconsin Department of Justice. “If this proposed merger happens, many Wisconsinites will see increased prices for their cell-phone plans.”

T-Mobile and Sprint are the lower-cost carriers among the major service providers, which also include Verizon and AT&T. Since the companies are direct competitors, their merger would reduce incentives to "engage in innovative strategies to attract and retain customers," the lawsuit alleges.

The merger would not result in "lightning-fast speeds and increased capacity" as the companies claimed, according to the release. A review by the attorneys general found these claims were "unverifiable" and the combined company would instead offer lower-quality service at an increased price.

"Any theoretical efficiencies that could be realized from the merger would be outweighed by the transaction’s immediate harm to competition and consumers," the release said.

In addition to the increased cost of cellular service, the states involved in the lawsuit are concerned that further consolidation of these companies would lead to a loss of retail jobs as well as lower pay for workers in the near future.

California, Colorado, Connecticut, Maryland, Michigan, Mississippi, New York and Virginia are involved in the lawsuit. The complaint was filed in United States District Court for the Southern District of New York.