Following Mississippi’s recent decision to come out in support of T-Mobile and Sprint’s merger after originally being included in the lawsuit against it, another state has now flipped sides.
Colorado has dropped out of the multi-state lawsuit seeking to block the T-Mobile-Sprint merger after coming to new agreements with Dish Network and T-Mobile. If Dish and T-Mo fail to meet the agreements, they’ll have to pay up to a total of $100 million.
Under the agreements, Dish will locate its new wireless headquarters in Littleton, CO for at least seven years. It will also employ at least 2,000 full-time employees in Colorado facilities that will work primarily on wireless. Finally, Colorado will be one of the first 10 states where Dish plans to launch 5G service by 2023. Dish must pay up to $20 million if it doesn’t meet its commitments.
Colorado made a separate agreement with T-Mobile. This agreement includes commitments related to T-Mo’s 5G network buildout, with pledges for both statewide and rural coverage, as well as a low-price plan promise. If it fails to meet its commitments, T-Mobile will face up to $80 million in penalties.
Here are the commitments T-Mobile has made to the state of Colorado:
Statewide Network Build Commitment
- Within three years of the closing date of the merger, New T-Mobile will deploy a 5G network in Colorado with at least 68 percent of the Colorado population having access to download speeds equal to or greater than 100 Mbps, and at least 76 percent of the Colorado population having access to download speeds equal to or greater than 50 Mbps.
- Within six years of the closing date, New T-Mobile will deploy a 5G network in Colorado with at least 92 percent of the Colorado population having access to download speeds equal to or greater than 100 Mbps, and at least 93 percent of the Colorado population having access to download speeds equal to or greater than 50 Mbps.
Rural Network Build Commitment
- Within three years of the closing date, New T-Mobile will deploy a 5G network in Colorado with at least 60 percent of the Colorado rural population having access to download speeds equal to or greater than 100 Mbps, and at least 63 percent of the Colorado rural population having access to download speeds equal to or greater than 50 Mbps.
- Within six years of the closing date, New T-Mobile will deploy a 5G network in Colorado with at least 74 percent of the Colorado rural population having access to download speeds equal to or greater than 100 Mbps, and at least 84 percent of the Colorado rural population having access to download speeds equal to or greater than 50 Mbps.
Low-Price Mobile Plan Commitment
- For at least five years following the closing date, New T-Mobile will offer new low-priced plans in the state that are available to all customers and provides: Unlimited talk, text, and 2GB of data for $15 or less per month and unlimited talk, text, and 5GB of data for $25 or less per month.
“The State of Colorado joined a multistate lawsuit to block the T-Mobile-Sprint merger because of concerns about how the merger would affect Coloradans. The agreements we are announcing today address those concerns by guaranteeing jobs in Colorado, a statewide buildout of a fast 5G network that will especially benefit rural communities, and low-cost mobile plans,” Chief Deputy Attorney General Natalie Hanlon Leh said. “Our announcement today ensures Coloradans will benefit from Dish’s success as a nationwide wireless competitor.”
With Colorado’s exit, the lawsuit to block T-Mobile and Sprint’s merger is now down to 15 states and Washington, D.C. While the lawsuit lost two participating states recently, it does still include the two states that are leading the lawsuit against the merger in New York and California.
The T-Mobile and Sprint merger recently got formal approval from the FCC after earning Justice Department approval earlier this year. Despite clearing those hurdles, the merger isn’t closing because T-Mo and Sprint have said that they won’t complete the deal until after the lawsuit is resolved. The trial in that lawsuit is set to begin on December 9th.
Source: Colorado Attorney General