Published: Thu, February 07, 2019
Electronics | By Shannon Stone

No Price Hike for 3 Years, CEO Says — Mobile Sprint Merger

No Price Hike for 3 Years, CEO Says — Mobile Sprint Merger

T-Mobile is still trying to complete its acquisition of Sprint and merge the two into the New T-Mobile.

T-Mobile US has hired the former FCC commissioner Mignon Clyburn as an adviser in its ongoing attempt to secure regulatory approval for its planned merger with Sprint.

After promising to add jobs with five new Customer Experience Centers post-merger, including in Overland Park where Sprint is headquartered, T-Mobile has now made another Sprint-focused pledge related to the merger.

Those are the words from T-Mobile CEO John Legere, who is well known for uttering bold statements. The company also thinks that all wireless consumers would be better off after the merger as AT&T and Verizon would most likely reduce prices also to remain competitive. The third and fourth largest wireless providers in the US say that joining forces would allow them to roll out the next generation of wireless networks more quickly and compete better with the top players AT&T and Verizon.

One of the biggest concerns and arguments against the T-Mobile/Sprint merger is that the newly joined company would suddenly raise its prices in an unfair way.

The letter also implies that following the merger, consumers will get more bang for their buck.

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

"The company's pledge is riddled with loopholes and ensures that any network improvements will allow them to justify higher monthly bills, effectively rendering the pledge meaningless", a group known as the 4Competition Coalition noted in a statement.

Shares of T-Mobile, which have risen 9% over the past year, gained 1% in after hours trading.

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". Sprint's (s) stock price, up 16% over the past year, was unchanged.

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