T-Mobile gets approval to buy Mint Mobile shortly after committing to unlocking policy
After nearly a year of convincing the Federal Communications Commission, T-Mobile has been allowed to proceed with its purchase of Ka’ena, which owns Mint Mobile and Ultra Mobile, reports Reuters.
T-Mobile revealed its intention to buy the Mobile Virtual Network Operators (MVNOs) which already run on its network in March of last year. In June, the company made a PowerPoint presentation to explain to the FCC that its proposed $1.35 billion buyout wouldn't harm competition or consumers.
There were several roadblocks on the way, including a request from consumer groups to impose a phone unlocking condition and MVNO Lyca Mobile's allegations that the acquisition should be blocked to protect vulnerable consumers.
Just yesterday, as it was waiting for the transaction to be approved, T-Mobile announced a phone unlocking condition for Mint Mobile and Ultra Mobile customers, per Light Reading. The company committed to unlocking existing Mint Mobile and Ultra Mobile devices that "have been activated on the T-Mobile network for at least 60 days and are not currently on a device financing plan." The company said it would text customers to inform them about the new unlocking policy within 60 days of closing the purchase of Mint Mobile and Ultra Mobile
The FCC cited this agreement when announcing its decision to approve T-Mobile's request to purchase Ka'ena. The agency thinks the agreement will make it easier for the customers of the MVNOs to switch carriers.
After the purchase, T-Mobile will be in more direct control of the brands and FCC believes that the elimination of double marginalization "should enable the two MVNOs to lower prices or improve service package characteristics." The FCC also thinks that the acquisition "will serve the public interest, convenience, and necessity."
T-Mobile's CEO Mike Sievert revealed the FCC's decision on Thursday during an earnings call. The deal is expected to close on May 1.
I am so happy to report that we have received regulatory approval to acquire Mint and Ultra Mobile. We are really looking forward to welcoming them to the 'uncarrier' family." - Mike Sievert
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Things that are NOT allowed: