Senators call for hearing on proposed T-Mobile-Sprint merger

Sens. Markey (D-MA), Klobuchar (D-MN), Udall (D-MN), Baldwin (D-WI), and Blumenthal (D-CT) sent a letter to Senate Commerce Committee Chair Roger Wicker (R-MI) and Ranking Member Maria Cantwell (D-WA) urging them to hold a hearing on the proposed T-Mobile-Sprint merger.

“The merger of T-Mobile and Sprint would reduce the number of national wireless carriers from four to three. This reduction in competition raises a number of important questions that the committee should address,” the senators wrote. “Since the merger was announced, some have argued that it will lead to harmful repercussions for consumers such as higher prices, fewer choices and less flexibility in switching carriers.”

The senators’ letter comes as opposition to the proposed merger picks up steam. The 4Competition Coalition announced the addition of five new members to the coalition of labor unions, public interest organizations, industry associations, and concerned companies opposing the merger.

“Sprint and T-Mobile claim their merger is a boon to rural Americans, but we don’t buy it and neither should regulators,” said John Nettles, CEO of Alabama-based Pine Belt Cellular. “T-Mobile has historically been no friend to rural consumers. They have consistently been unwilling to enter into fair reciprocal roaming agreements with rural carriers like Pine Belt, something that is a disservice to both their customers and to those of the rural carrier.”

Earlier this month, the Federal Communications Commission (FCC) suspended its review of the merger due to the partial federal government shutdown. CWA opposes the merger as currently structured because it would result in 30,000 job cuts and price increases of more than 15 percent.

Links:

Sens. Markey, Klobuchar, Udall, Baldwin, and Blumenthal letter (US Senate, Jan. 24, 2019)

More rural carriers announce opposition to Sprint/T-Mobile merger (4Competition Coalition, Jan. 24, 2019)

Government shutdown suspends Washington’s review of Sprint/T-Mobile merger (Kansas City Star, Jan. 2, 2019)

T-Mobile Sprint Facts (CWA, Dec. 2018)