Mobile wins U.S. security OK for sprint takeover

The final hurdle will be approval from the Federal Communications Commission, which rejected the merger in 2014. USA news outlets have reported that to get the merger approved, those parent companies may reconsider their ties with Huawei.

Sprint and T-Mobile are one step closer to merging. 5G, or fifth-generation, wireless communications networks would enable services such as remote surgery or driverless cars and allow customers to experience video and virtual reality with greater ease.

Now neither Sprint nor T-Mobile actually uses any Huawei equipment in their networks, so they're technically in good shape for those rules, but there's a catch; Deutsche Telecom and Softbank both do use Huawei, and they own T-Mobile and Sprint, respectively.

Deutsche Telekom, based in Bonn, will own 42 per cent of the new company, while Tokyo-based SoftBank will own 27 per cent.

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Reuters reported earlier on the timing of the approval and said United States officials were pressuring Deutsche Telekom to stop using equipment made by Huawei.

The US has banned the use of Huawei equipment in its 5G networks, claiming that the company can be a conduit for spying by Beijing.

T-Mobile and Sprint dropped the controversial phone brand, Huawei, before they complete their merger. Negotiations between the government and the two carriers is still ongoing, and sources told Reuters that any deal could still fall through. Cabinet officials, lawmakers and regulators have all raised the alarm, sometimes directly urging businesses to oppose deals with the company. Earlier this month, Meng Wanzhou, Huawei's chief financial officer and daughter of its billionaire founder, was arrested in Canada at the request of the United States, which has asked for her extradition.

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