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Mobile, Sprint Merger Looks To Hold Prices For Customers

08 February 2019

"While we are combining our networks over the next three years, T-Mobile today is submitting to the commission a commitment that I stand behind - a commitment that New T-Mobile will make available the same or better rate plans for our services as those offered today by T-Mobile or Sprint", Legere wrote in the letter.

The road to merging two large carriers isn't an easy one.

"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. Despite being the fastest-growing carrier in recent years, T-Mobile rounded out 2018 with 80 million subscribers. And top T-Mobile execs, including chief executive John Legere, have spent significant time staying at the Trump hotel in Washington, though Legere has said he hopes regulators will "make their decision based on the benefits it will bring to the US, not based on hotel choices". "American consumers will benefit from a nationwide 5G network that is both broad and deep, and we can't wait to get started", he said.

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New customers: T-Mobile added 2.4 million new customers in the fourth quarter, bringing the annual total to 7 million, up from 5.6 million additions in 2017. He noted the merger has been approved by 15 of the required 19 state public utilities commissions and added that he and Sprint Executive Chairman Marcelo Claure look forward to speaking with lawmakers before a joint hearing on Capitol Hill next week. However, critics argue that not only would the proposed merger result in reduced competition and consequently higher prices, it may also lead to unemployment. "The core tenet of the New T-Mobile is that by bringing these companies together you get something very different from the T-Mobile you know today plus the Sprint you know today", he said.

T-Mobile has a big year ahead in 2019, headlined by the projected closing of the mega-merger with Sprint. As well, legacy plans may be adjusted to reflect rising tax costs that would be out of the New T-Mobiles control.

Mobile, Sprint Merger Looks To Hold Prices For Customers