Group called 4Competition Coalition is formed to block T-Mobile-Sprint merger
A group comprised of 13 companies and organizations have banded together to form the 4Competition Coalition in an effort to stop the T-Mobile-Sprint merger. The group has put up a web page that screams "STOP THE MERGER" in huge print. The coalition is worried about a number of issues, starting with the higher prices it expects as the number of major U.S. carries is whittled down to three from four if the deal goes through. The group cites one "credible" analyst who says wireless prices will rise 15% if the merger is approved.
Another concern that the coalition has is that the merged T-Mobile-Sprint will block new MVNOs from starting lower cost competition to the New T-Mobile. And using a previously released analysis from the Communication Workers of America (CAW), the 4Competition Coalition says that the deal will result in the loss of approximately 30,000 jobs as the merged company gets rid of duplicate and unneeded personnel.
The coalition also doesn't believe that America needs the deal in order to remain a leader in 5G. To prove this, the organization says that before the merger, both firms promoted their own separate 5G networks. In addition, Verizon and AT&T will also offer 5G services. And while T-Mobile and Sprint say that the merger will help coverage in rural areas of the country, the coalition points out that both carries' actions in the past disprove that.
"Consumers deserve more competition from our wireless industry, not less. Sprint and T-Mobile have not shown that this merger as it is currently proposed will serve the public interest. Instead, they have admitted that consumer prices will rise. Further, there's no evidence 5G investment would accelerate as a result of this deal, nor have Sprint and T-Mobile proven any of their other claimed benefits. We are joining the coalition to advocate for a competitive wireless industry that serves consumers' interests."-Jeff Blum, Senior Vice President for Public Policy and Government Affairs, Dish Network
The 4Competition Coalition is made up of the following companies and organizations:
- AFL-CIO
- Common Cause
- C-Spire
- CWA-Union
- DISH Network
- Fight for the Future
- New America's Open Technology Institute
- NTCA-The Rural Broadband Association
- Open Markets Institute
- Public Knowledge
- Rural Wireless Association
- The Greenlining Institute
- Writers Guild of America West
The web site includes petitions and letters relating to the merger, a list of lawmakers who have expressed concern about the deal, and states with officials who are reviewing the merger. Both T-Mobile and Sprint are awaiting approval from the FCC and the DOJ in order to close the transaction. T-Mobile says that it should wrap up the merger by the middle of next year.
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