Published: Thu, February 07, 2019
Electronics | By Kelly Massey

Mobile CEO promises the same or better prices following Sprint Merger

Mobile CEO promises the same or better prices following Sprint Merger

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.

In a new open letter sent to Ajit Pai at the Federal Communications Commission, T-Mobile CEO John Legere makes a few new promises surrounding the proposed T-Mobile-Sprint merger. The hearing is set for February 13, and both Legere and Sprint Chairman Marcelo Claure have agreed to testify.

"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. We believe this merger makes consumers better off, and we're willing to put our money where our mouth is.

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T-Mobile says that if a merger deal with Sprint goes through, the Greater Rochester area will have one of five new "T-Mobile Customer Experience Centers" and that will create at least 1,000 jobs in Upstate New York. Sprint customers have separately been assured that once the deal closes, they will get a rate plan that's equal to or better than the plans now being offered by their carrier. That being said, T-Mobile has given itself some leeway as the letter says that the retained legacy plans could be subject to cost increases that are not within its control, such as increases in taxes, fees, and surcharges. It is undergoing an antitrust review by the Justice Department and the FCC must decide that the transaction is in the public interest.

"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. Despite being the fastest-growing carrier in recent years, T-Mobile rounded out 2018 with 80 million subscribers.

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