Sprint and T-Mobiles argument for the merger is that the two carriers need each other to push forward with 5G and with Sprints accumulating debt, it needs T-Mobile so the carrier doesnt go bankrupt.
A sign for a T-Mobile store is seen in Manhattan, New York, U.S., April 30, 2018.
Overland Park-based Sprint and T-Mobile shares fell after a Wall Street Journal report cast doubt on the likelihood of government approval of their $26.5 billion merger.
A final decision on the deal is likely near the end of the 180-day Federal Communications Commission review period that expires in June.
In a meeting earlier this month, Justice Department staff members laid out their concerns with the all-stock deal and questioned the companies arguments that the combination would produce important efficiencies for the merged firm, the people said.It cited people familiar with the matter.
T-Mobile US and Sprint are facing potential rejection of their proposed merger at the US Department of Justice. DOJ spokesman Jeremy Edwards declined to comment on an ongoing investigation. A number of state attorneys general are also reviewing the deal.
T-Mobile and Sprint did not immediately answer messages. There's a possibility that T-Mobile and Sprint will offer concessions to ease the government's worries. T-Mobile and Sprint are smaller players in a market led by Verizon and AT&T, but T-Mobile has surged in recent years by offering more customer-friendly deals than the two biggest carriers. The officials are also reportedly prepared to sue T-Mobile and Sprint if federal officials don't help them to challenge the proposed merger.