T-Mobile CEO promises the same or better prices following Sprint Merger
In a letter sent to the United States FCC Chairman, John Legere outlines some of the expectations that “the New T-Mobile” has in terms of keeping prices competitive while offering customers more.
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. 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.
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 are those offered today by T-Mobile or Sprint.
“I want to reiterate,” reads the letter, “...T-Mobile’s rates are NOT going to go up. Rather, our merger will ensure that America consumers will pay less and get more.” T-Mobile plans to combine its networks with Sprint over the first three years of the merger, during which time would include rolling out a 5G network and adding capacity to existing towers.
In a separate letter from the Law firm overseeing the merger, it is described that legacy rate plans would remain in effect for the same three year period, unless a better plan with a lower price or more data becomes available. As well, legacy plans may be adjusted to reflect rising tax costs that would be out of the New T-Mobile’s control.
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.
