The upcoming merger of T-Mobile and MetroPCS has hit a snag as the Department of Justice has requested the Federal Communications Commission to halt its review of the merger. The merger will make Deutchse Telekom, the parent company of T-Mobile, the owner of prepaid regional carrier MetroPCS. In the agreement, MetroPCS shareholders will be getting $1.5 billion in cash as well as a 26 percent stake in the merged companies. Deutsche Telekom will have a 74 percent stake in the company making it control the shots.
The letter sent to the FCC is as follows
Ms. Marlene H. Dortch
Federal Communications Commission
445 l2th St. SW, Room TW-B204
Washington, DC 20554
WC DK 12-301 (DA 12-1730 rel. October 26, 2012)
Dear Ms. Dortch:
The Department of Justice (“DOJ”), including the Federal Bureau of Investigation
(“FBI”), with the concurrence of the Department of Homeland Security (“DHS”), requests that
the Federal Communications Commission (“Commission”) defer action on the above-referenced
matter. DOJ, DHS, and FBI (“the Agencies”) are currently reviewing this matter for any
national security, law enforcement, and public safety issues but have not yet completed that
effort. We therefore request that the Commission defer action until such time as the Agencies 2
notify the Commission of the completion of their review and, based on the results of such
review, request appropriate action by the Commission.
DOJ, FBI, and DHS will advise the Commission promptly upon completion of our review.
Thank you for your consideration.
National Security Division
U.S. Department of Justice
The letter only means that the review be halted temporarily as the DOJ, DOHS and the FBI will be looking into this first to see if any national security issues will arise from the merger.
This letter was sent just hours after another similarly worded letter was also sent to the FCC but this time around regarding the planned merger of Softbank and Sprint.