Wednesday, 24 April, 2019

Mobile pledges three-year price clampdown if merger is approved

T-Mobile CEO John Legere CES 2017 T-Mobile tells FCC that if Sprint deal closes, prices won't rise for at least three years
Emmett Howard | 08 February, 2019, 01:51

We believe this merger makes consumers better off, and we're willing to put our money where our mouth is. The Sprint merger still awaits antitrust regulatory approval by the U.S. Department of Justice.

"T-Mobile finished another year with record breaking financials and our best-ever customer growth", CEO John Legere said in a statement.

The wireless operators say that joining forces will increase competition that could help with the introduction of super-fast 5G network speeds. "With its business-friendly environment, diverse workforce and strong sense of community, the Greater Rochester area is a ideal location to build another New T-Mobile Customer Experience Center".

"Generally when it comes to mergers, the first side to offer concessions is likely to be the side that is losing", said Blair Levin, a former FCC chief of staff and an industry analyst for New Street Research. Sprint trailed with 54 million. It also might have to raise the prices of third party services whose costs are not controlled by T-Mobile.

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In a letter to the Federal Communications Commission (FCC), T-Mobile CEO John Legere vowed not to increase prices for three years if the carrier's $26 billion merger with Sprint is approved. Although not mentioned specifically in the filing, T-Mobile offers its unlimited customers free Netflix (nflx) accounts, for example, but Netflix recently raised its prices.

Opponents argued that the conditions made the pricing promise worthless, however. The group says that the pledge is full of loopholes and contains a provision for higher monthly bills in the future on the pretext network improvements. On Wednesday, Senator Elizabeth Warren of MA and Representative Pramila Jayapal of Washington issued letters demanding information about the T-Mobile executives' stays and whether Trump was informed of them. "Rather, our merger will ensure that American consumers will pay less and get more".

T-Mobile stock is up close to 2 percent in early-morning trading. "With our stable property tax rate, highly-skilled workforce, and great quality of life, it's no wonder that hundreds of employers have chosen to grow more jobs in Monroe County in the past three years alone".

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