Nine Senators oppose T-Mobile-Sprint merger

Nine senators, including many presidential hopefuls, urged the FCC and DOJ to reject the proposed T-Mobile-Sprint merger because it would “raise prices for consumers, harm workers, stifle competition, exacerbate the digital divide, and undermine innovation.” In their letter, the senators note that the proposed transaction will result in the loss of 30,000 jobs and create an exclusive “country-club market” in the wireless sector. The “three remaining members of this exclusive club will have every incentive to shut the door on new members, happily divide the market, and collect ever-rising monthly rents from wireless subscribers with few real alternatives," wrote Sens. Blumenthal (D-CT), Sanders (D-VT), Klobuchar (D-MN), Gillibrand (D-NY), Warren (D-MA), Markey (D-MA), Booker (D-NJ), Udall (D-NM), and Brown (D-OH).

The letter warns that “this merger will turn the clock back, returning Americans to the dark days of heavily consolidated markets and less competition, with all of the resulting harms.”

Last week, during a hearing before the US House Energy and Commerce Subcommittee on Communications and Technology, witnesses raised multiple concerns about the proposed merger. As CWA President Chris Shelton put it: “30,000 fewer jobs. Lower wages by as much as $3,000 per year. Disproportionate harm to low-income communities. Higher prices for all consumers. All to help a state-owned German company and a Japanese billionaire make more money. Members of the Committee, that is not in the public interest.

Links:

Democratic letter opposing the T-Mobile-Sprint merger (US Senate, Feb. 12, 2019)

House hearing reveals weakness of T-Mobile and Sprint’s merger claims, opponents show merger is not in the public interest (Speed Matters, Feb. 13, 2019)