Sprint(s s) revealed on Wednesday that its acquisition by SoftBank had passed a key regulatory hurdle. Normally telecom mergers are the sole purview of the Federal Communications Commission and the U.S. Department of Justice, but since Japan-based SoftBank would effectively take over a U.S. company, the Committee on Foreign Investment in the U.S. also gets its say on the deal’s national security implications.
CFIUS has given its blessing, and Sprint has entered into a national security agreement with the U.S. government. But according to a Wall Street Journal report there are plenty of strings attached. Sprint will create a national-security committee and appoint an independent security director to its board, according to the report. The deal also gives the government the unusual right to veto infrastructure deals and even ban certain vendors outright from Sprint’s network, the Journal said.
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