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T-Mobile and Sprint Make Big Claims About Merger Benefits

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Jun 19, 2018, 10:16 AM by Eric M. Zeman
updated Jun 19, 2018, 10:30 AM

T-Mobile and Sprint today officially petitioned the FCC for permission to merge. The companies filed a Public Interest Statement with the agency that makes lofty claims about why the merger a good idea. To start, the companies promise to "build a world-class nationwide 5G network" that will surpass the capacity of AT&T and Verizon. T-Mobile and Sprint believe they can do this faster if combined. The two also believe prices will go down as a result. "T-Mobile and Sprint coming together ... will spur Verizon and AT&T to invest in a huge capacity increase that will drive down the price per gigabyte across the entire industry," said T-Mobile CEO John Legere. He claims consumers will see a 55% drop in the price per GB. The two firms believe its future 5G network will supplant the need for wired services in the home and let millions cut the cord (and thus save money.) The New T-Mobile is committed to bringing increased broadband coverage to rural communities using its 600 MHz holdings, which will be served by 600 new stores and dedicated call centers. Sprint and T-Mobile also suggest it will offer stronger products to business and video customers. Last, the two believe the merger will create jobs. "We will create more than 3,000 direct jobs initially," said Sprint Chairman Marcelo Claure. "In just a few years, that will increase to more than 11,000 jobs. And, thousands more jobs will be created to support our 5G network build-out." This last point contradicts one of the most basic outcomes of many mergers: job reductions. Sprint and T-Mobile first proposed the merger in April. It's unclear what steps the government, and the FCC in particular, will take to review the deal.

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