Published: Fri, February 08, 2019
Tech | By Constance Martin

Mobile hires former FCC commissioner Clyburn to help lobby for Sprint merger

Mobile hires former FCC commissioner Clyburn to help lobby for Sprint merger

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.

The FCC and the Department of Justice, along with some state utility regulators, must approve the deal that would combine the third and fourth largest wireless players.

Most importantly, the merger with Sprint will enable T-Mobile to "break down this traditional trade-off that consumers have always been forced to make, which is: 'Do you want a good deal or do you want the best network?'" he said. 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.

"T-Mobile finished another year with record breaking financials and our best-ever customer growth", CEO John Legere said in a statement.

T-Mobile says that the new customer care employees will be eligible to receive benefits and opportunities such as significant management preparation experience, career development paths and college tuition reimbursement.

High hopes around the globe for 2nd Trump-Kim summit
The developments come after US President Donald Trump visited a US military base in western Iraq in December previous year . The pair held their first summit in Singapore in June, the first time a sitting US president has met a North Korean leader.

Some analysts say the fact that T-Mobile felt compelled to offer a price freeze is evidence that ordinary market pressures would encourage the combined company to raise prices.

With little news to share on the earnings front, the prospects for T-Mobile's merger with Sprint was the predominant focal point during the call.

T-Mobile also says that raising prices could backfire anyway, as loyal customers would lose faith in the carrier and migrate to other companies.

For the past four years, T-Mobile and Sprint have been trying to merge together. Although not mentioned specifically in the filing, T-Mobile offers its unlimited customers free Netflix (nflx) accounts, for example, but Netflix recently raised its prices. The third and fourth largest wireless providers in the USA say that joining forces would allow them to roll out the next generation of wireless networks more quickly and compete better with the top players AT&T and Verizon.

Moving forward. T-Mobile shares rose 1.6% in premarket trading.

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