Congressional lawmakers have asked for a closer review of the proposed Sprint–T-Mobile merger, citing concerns about potential ties between Sprint’s ownership and Chinese technology interests.
According to a Bloomberg report, the concern stems from Sprint’s majority ownership by Japan’s SoftBank, which has had business ties with Huawei—an organization the U.S. government has identified as posing national security risks. While the connection may appear indirect, lawmakers believe it warrants formal scrutiny.
A draft letter is circulating among House members seeking signatures from critics of the transaction. The completed letter is expected to be sent to Treasury Secretary Steven Mnuchin next week. It calls for a comprehensive national security review, noting that both companies involved in the merger operate as subsidiaries of foreign-owned firms, and that one of those parents has long-standing relationships with entities influenced by the Chinese state.
The letter also alleges that Sprint failed to comply with a 2013 security agreement that required the removal of Huawei equipment from its networks. It states that “three years later, Sprint under the control of SoftBank, confirmed Huawei equipment remained in use in their networks in contravention of the 2013 agreement.”
This development comes amid a broader context of U.S.-China technology tensions:
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It follows reports that the Trump administration requested the FCC to block China Mobile from operating in the United States.
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It occurs about a month after the U.S. imposed a ban on Chinese telecommunications company ZTE for violating trade restrictions with North Korea and Iran.
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It comes in the wake of criticism directed at President Donald Trump by watchdog groups over his decision related to the ZTE case.
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And it appears just days before the U.S. and China were expected to announce significant tariffs on each other’s goods.
The proposed Sprint–T-Mobile merger, valued at $26.5 billion, would combine the third- and fourth-largest wireless carriers in the U.S. by subscriber count. The companies have argued that merging would speed the deployment of next-generation 5G networks across the country by pooling resources and spectrum assets.
Lawmakers’ request for an investigation centers on national security implications stemming from foreign ownership and historical equipment use, and whether those factors should influence approval of the transaction.
Do you believe this merger merits a national security review? Share your thoughts in the comments.
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