Tech

Mobile, Sprint Merger Looks To Hold Prices For Customers

Mobile, Sprint Merger Looks To Hold Prices For Customers

"To remove any remaining doubt or concerns about New T-Mobile's prices 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.

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.

Those are the words from T-Mobile CEO John Legere, who is well known for uttering bold statements. However, critics argue that not only would the proposed merger result in reduced competition and consequently higher prices, it may also lead to unemployment. "With its business-friendly environment, diverse workforce and strong sense of community, the Greater Rochester area is a flawless location to build another New T-Mobile Customer Experience Center". The next two hurdles to cross are clearances from the Department of Justice and FCC. The third and fourth largest wireless providers in the USA 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.

More news: Multiple Patriots players have no interest in visiting the White House

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".

Some analysts say the fact that T-Mobile felt compelled to offer a price freeze is evidence that ordinary market pressures would encourage the combined company to raise prices. "Today's news makes clear that T-Mobile knows that its merger is in trouble".

The letter also implies that following the merger, consumers will get more bang for their buck. Sprint's (s) stock price, up 16% over the past year, was unchanged.


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