FTC, DOJ Clear Sprint's Virgin Mobile Buy
The FTC and Justice Department have given their blessings for Sprint-Nextel's planned $483 million merger with Virgin Mobile USA, officials confirmed Monday. Because Virgin, and its recent acquisition Helio are both MVNOs (mobile virtual network operators), analysts did not expect the deal to raise serious antitrust issues and thus believed regulators would approve the pairing. The deal could still be subject to review by the FCC, which has yet to issue a public notice on the matter. Virgin Mobile holds a small number of international licenses, which need to be transferred and require approval by the FCC, analysts at Stifel Nicolaus said in an e-mail. In its orders approving Verizon's combination with Alltel and Sprint's purchase of Clearwire last November, the FCC reaffirmed its view that MVNOs and resellers should be excluded from its analysis of the competitive impact of a wireless merger, they wrote.
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