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

Posted February 08, 2019

Legere's letter to Pai, and an accompanying four-page filing laying out details of the promise to the FCC, came as the agency renewed its review of the proposed merger announced after being interrupted by the partial government shutdown.

In a letter to the FCC on Monday, Legere attempted to counter one of the main arguments against the merger - that as soon as T-Mobile absorbs Sprint, competition in the market will decrease and rates will go up.

"New T-Mobile's commitment to bridging the digital divide is further illustrated by its pledge to continue supporting Sprint's signature corporate philanthropy - the 1Million Project", T-Mobile said in its filing with the Public Service Commission of NY. My management team and I can make this personal commitment because we believe in delivering on our promises, and we know if we do not, we will lose credibility and the trust of our customers.

T-Mobile claims the deal will allow the combined company to better compete with industry titans AT&T and Verizon and catalyze American leadership in the development of 5G wireless technology. Legere addressed these concerns in the letter. It also might have to raise the prices of third party services whose costs are not controlled by T-Mobile.

At the end he clarified what he means by all that, saying that they are making its prices available to Sprint users over the next three years, as the two companies combine their networks.

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".

Mignon Clyburn could make it a tad more hard to argue against the deal. Despite being the fastest-growing carrier in recent years, T-Mobile rounded out 2018 with 80 million subscribers.

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