Mobile, Sprint Merger Looks To Hold Prices For Customers

Isaac Cain
February 7, 2019

T-Mobile and Sprint have been making the case for their merger, which needs federal approval, for months.

Due to subcommittee scheduling issues, T-Mobile's John Legere and Sprint's Marcelo Claure will appear before the House Communications Subcommittee next Wednesday, Feb. 13 at 10 a.m., and then appear the next day at the same time before the House Judiciary Antitrust Subcommittee. Ostensibly, customers signing up with the new T-Mobile if and when the merger goes through would pay no more than this until at least 2022. We believe this merger makes consumers better off, and we're willing to put our money where our mouth is.

The FCC, Department of Justice, and other state utility regulators must approve the merger that would combine T-Mobile and Sprint.

T-Mobile says that the new customer care employees will be eligible to receive benefits and opportunities such as significant management preparation experience, career development paths and college tuition reimbursement.

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Credit: T-Mobile "Critics of our merger, largely employed by Big Telco and Big Cable, have principally argued that we are going to raise rates right after the merger closes".

A broad claim like that sounds good on paper, but Legere went a step further near the end of his letter, promising the FCC that, for the next three years, New T-Mobile's rates will be "the same or better" as what either T-Mobile or Sprint now offer.

In a separate government filing, T-Mobile noted that while it would attempt to fend off price increases it may have to adjust rates to pass through costs like taxes or third-party fees that "are not within the control of New T-Mobile". T-Mobile announced plans to acquire Sprint for $26 billion to merge the two telecom companies. This foundation is Sprint's effort to help one million high school students to get connected by giving them mobile devices like smartphones, mobile hotspots, and tablets along with free Sprint mobile service for up to four years in high school. Sprint's (s) stock price, up 16% over the past year, was unchanged.

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