• by Wendy Davis  @wendyndavis, March 11, 2020

T-Mobile's proposed $26 billion acquisition of Sprint inched closer Wednesday, when California's Attorney General Xavier Becerra dropped his opposition to the deal in exchange for concessions from the telecoms.

Becerra said Wednesday that the telecoms -- currently the third- and fourth-largest in the country -- had agreed to several conditions, including ones aimed at ensuring service for low-income residents. Among other specific terms, the settlement requires the merged T-Mobile/Sprint to make low-cost plans available in the state for at least five years, and to offer some no-cost service plans to 10 million qualifying low-income households.

Becerra and 12 other attorneys general challenged the merger in court last year, arguing it would lead to price hikes and worse service for consumers.

U.S. District Court Judge Victor Marrero in the Southern District of New York sided against the attorneys general last month, ruling that the deal likely won't lessen competition in the wireless industry. Shortly after the ruling, New York Attorney General Letitia James dropped her opposition to the deal.

But the merger still has some hurdles to overcome before it can close.

Among others, U.S. District Court Judge Timothy Kelly in Washington, D.C. must still approve conditions set by the Department of Justice. The agency endorsed the deal last year, but only on condition that T-Mobile and Sprint divesting some assets to satellite provider Dish Network, and allow Dish to use T-Mobile's network for seven years.

California's Public Utility Commission must also still approve the deal.

The Federal Communications Commission voted in favor of the merger, on the theory that it would lead to expanded 5G coverage. FCC Chairman Ajit Pai said the companies had promised to create a 5G network that will extend to rural parts of the country -- many of which currently lack high-speed broadband access -- and to avoid price hikes for three years.

But consumer advocacy groups and other critics question whether Dish will effectively become a fourth major wireless carrier.