The agreement would leave just three major wireless carriers in the United States. The combined company will take on the name T-Mobile. T-Mobile CEO John Legere will head the merged company.

Schwartzman noted the deal was blocked in 2014 by the Obama administration because regulators determined that the wireless market could support four major players, and having them compete benefited consumers.

“It will be difficult to convince the Justice Department that circumstances have changed so much that it’s necessary to go down to three providers,” he said. “That’s the major hurdle that has to be confronted.”

Sprint and T-Mobile’s announcement is just the latest step in an ongoing movement towards telecom consolidation. AT&T is in talks to acquire Time Warner, which owns CNN. The outcome of that $85 billion merger-in-the-making depends on a case in federal court, which is pending the decision of the judge.

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