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07 February 2019, 10:41 | Casey Mitchell
T Mobile promises the Sprint merger won’t drive up prices… for now
The merger was first proposed last April, and is still going through regulatory review.
The newly proposed deal blasts back at those that oppose the merger by saying that it would lead to higher prices which could harm consumers by taking one of the four major players out of the wireless space, USA Today reported. The hearing is set for February 13, and both Legere and Sprint Chairman Marcelo Claure have agreed to testify.
"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 a brief letter to Federal Communications Commission chairman Ajit Pai. We believe this merger makes consumers better off, and we're willing to put our money where our mouth is.
Considering this letter was posted yesterday, February 4, 2019, that would mean entry-level prices would not exceed the base-level $70 unlimited plan T-Mobile now offers, which includes all taxes and fees in the price.
"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. "Rather, our merger will ensure that American consumers will pay less and get more".
T-Mobile also says that raising prices could backfire anyway, as loyal customers would lose faith in the carrier and migrate to other companies. The FCC and the Department of Justice are among the agencies that must approve the deal. Despite being the fastest-growing carrier in recent years, T-Mobile rounded out 2018 with 80 million subscribers.
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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".
That means he's publicly guaranteeing that there will be no price hikes for the next three years.
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