On Tuesday, a federal judge ruled in favor of the $26 billion merger between T-Mobile and Sprint.

Last year, a group of state attorneys general sued to block the deal in federal court after it received approval from both the Federal Communications Commission and the Justice Department. In January, the states argued that shrinking the national wireless carrier pool down from four to three providers would decrease competition and create higher prices for consumers if the deal were approved.

In his decision, Southern District of New York judge Victor Marrero writes, “The court concludes that the proposed merger is not reasonably likely to substantially lessen competition in the” mobile service market and would likely “enhance competition in the relevant markets to the benefit of all consumers.”

As part of its deal with the DOJ, T-Mobile agreed to enter an MVNO deal with Dish Network, essentially loaning the company some of its spectrum so it could compete with the New T-Mobile as soon as the merger with Sprint closed. Throughout January’s trial, the states argued that an MVNO deal with Dish, as it was laid out by the DOJ, would incentivize the company to coast along and eventually sell off its own spectrum holdings at a profit later.

In Tuesday’s decision, Marrero said “Dish as a new entrant will constitute a substantial incentive to competition.”