18.05.01 Tmobile Sprint

May 1, 2018
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T-MOBILE & SPRINT TO MERGE?

1 in 3 Americans Impacted

Promising more jobs & faster internet, but $26B deal still needs regulators’ blessing – which hasn’t gone well in the past…

THIRD TIME THE CHARM?

What’s different this time?
Their sales pitch: merger makes the U.S. beat China on 5G wireless (ultra-fast internet).

Why would that plan work?
Trump Admin shown 5G is a priority.

Not everybody is buying it…
“I’ll stipulate that John Legere (CEO of T-Mobile) is the world’s greatest salesman. But what he’s selling right now, it’s old stuff.”
Tom Wheeler, Former FCC Chair

How Will Deal Affect You?

  • Less Competition: U.S. wireless market dominated by 3 players.
  • Closer in Size:A Tie-up gives T-Mobile/Sprint 100M customers (AT&T 93M, Verizon 116M).
  • 5G: Faster rollout of a nationwide higher-speed internet network.
  • Higher Bills?: Unclear, but Economics 101: less competition = higher prices.

FLIP: opposing takes

"Combination will not only result in less choice for consumers, it will provide greater incentive for the 3 remaining companies to act in concert.”
Gigi Sohn, Georgetown Law Inst.


"I think this deal is good for consumers. …T-Mobile led this aggressive, consumer-focused charge… (rivals have) been forced to follow suit."
Jonathan Chaplin, New Street Research

SmartHER Take: The biggest question for regulators will be what's more important for you the consumer: lower monthly wireless prices or cutting edge, faster technology? We want to know what you think! Email us Info@SmartHerNews.com.

  • T-Mobile CEO to regulators: China is beating US on fast 5G wireless but our Sprint deal can change that: https://www.cnbc.com/2018/04/30/t-mobile-ceo-john-legere-sprint-buyout-will-super-charge-competition-and-wireless-speeds.html
  • A merger between T-Mobile and Sprint: Faster data, but at a price
    Some market watchers have a hunch wireless customers wouldn”t see any benefit from the merger.
    https://www.nbcnews.com/business/business-news/merger-between-t-mobile-sprint-faster-data-price-n870176
  • How Would a T-Mobile-Sprint Merger Affect Your Cellphone Bill?:
    https://www.nytimes.com/2018/04/30/business/t-mobile-sprint-cellphone-bill.html
    Will my bill go up?
    Possibly, but not immediately. It”s difficult to promise that prices will remain at their current levels, even though the companies say consumers should expect the deal to lower prices.But more competition is generally regarded as better for consumers. After all, look at what happened after regulators denied an attempted merger by T-Mobile and Sprint in 2014.That year, after regulators signaled they would reject a deal, the two companies began a price war that rippled across the industry. Then in August 2016, T-Mobile was the first carrier in the United States to offer unlimited voice, text and data plans. The next day, Sprint began offering a $100 unlimited voice, text and data plan for two lines. Six months later, Verizon and then AT&T followed with similar offerings. Over all, wireless prices declined 13 percent from March 2016 to March 2017, according to the Labor Department.

by Jenna Lee,

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