Mobile Promises You Will Pay Less, Get More After Sprint Merger

An image of John Legere and other T Mobile employees at the Senate Judiciary Subcommittee meeting

Fortune

Legere says that the merger would facilitate the deployment of its 5G network and due to its enormous capacity and lower marginal cost per customer, customers will receive better service and more data at same or lower rates.

However, Legere has rebuffed those claims and has provided the reassurance that the New T-Mobile will not hike prices after its merger with Sprint.

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.

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. And top T-Mobile execs, including chief executive John Legere, have spent significant time staying at the Trump hotel in Washington, though Legere has said he hopes regulators will "make their decision based on the benefits it will bring to the US, not based on hotel choices". He says that these critics erroneously cling to the assumption that the T-Mobile-Sprint merger will cause consumers to pay more for wireless service and/or get fewer features with their plans.

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Brexit campaigner Nigel Farage reacts during a plenary session of the EU Parliament in Brussels, Belgium January 30, 2019. She will seek to secure changes which can persuade MPs to support her deal in a series of votes expected on February 14.

Legere did tell the FCC that the combined company might have to raise the taxes, fees and surcharges on its wireless plans. 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.

"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.

For the past four years, T-Mobile and Sprint have been trying to merge together. T-Mobile and Sprint will also need approval from the Justice Department to move forward with the merger.

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