Published: Thu, February 07, 2019
Technology | By Lionel Gonzales

Mobile vows not to raise prices if Sprint merger approved

Mobile vows not to raise prices if Sprint merger approved

T-Mobile and Sprint have been making the case for their merger, which needs federal approval, for months.

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. The hearing is set for February 13, and both Legere and Sprint Chairman Marcelo Claure have agreed to testify. 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 head of T-Mobile sent a letter to the FCC earlier this week, saying they will not raise prices for customers for at least three years if the deal is approved. To this, T-Mobile rebuts that if it did jack its prices up, its customers would lose faith in the company, loyal customers would leave, and it would destroy the future of the carrier. The FCC and the Department of Justice are among the agencies that must approve the deal.

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Critics of the merger have alleged that the merged entity, New T-Mobile, would take advantage of its stronger position and hike rates. It also might have to raise the prices of third party services whose costs are not controlled by T-Mobile. "Today's news makes clear that T-Mobile knows that its merger is in trouble".

The 4Competition group includes some telecom unions like the Communications Workers of America, which fear job losses from the merger, as well as more direct rivals like Dish Network (dish) and Cspire. This foundation is Sprint's effort to help one million high school students to get connected by giving them mobile devices like smartphones, mobile hotspots, and tablets along with free Sprint mobile service for up to four years in high school.

In the latest discussions, the T-Mobile/Sprint merger is said to complete its course as soon as the current quarter ending on March 31. Sprint's (s) stock price, up 16% over the past year, was unchanged.

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