T-Mobile CEO Legere stuffs critics of the Sprint merger by reiterating a major promise

T-Mobile CEO Legere stuffs critics of the Sprint merger by reiterating a major promise
T-Mobile and Sprint continue to await regulatory approval for the merger between the third and fourth largest U.S. carriers, respectively. The FCC and the DOJ still need to sign off on the deal, and as we told you yesterday, some analysts have been reducing their odds that the deal will close. T-Mobile CEO John Legere today reiterated something that he has been saying since the deal was announced nearly a year ago. In a post written on the carrier's blog, Legere maintained that the merger will "jobs-positive" from the first day. That contradicts the Communication Workers of America (CWA); the labor union says the deal will cause more than 28,000 people to lose their jobs.

While overlapping stores will close resulting in job losses, and those holding duplicate job titles will get axed, Legere says that the New T-Mobile will have more than 130 million customers following the closing of the merger. As a result, Legere says that the company will need "A LOT of people." The executive points out that T-Mobile has already committed to opening five new state-of-the-art customer experience centers in addition to expanding the centers it already has open. Each new center will result in the creation of 1,000 new jobs. T-Mobile will also expand its Team of Experts, a more personal style of customer service. This will require more customer care agents than Sprint already has. And the localized service available from Team of Experts means that if the deal is allowed to close, T-Mobile will move Sprint's overseas customer care team to the states. 

Legere also says that the New T-Mobile will open 600 stores to cover rural areas and small towns that are not served by T-Mobile or Sprint presently. These stores will create 5,000 new jobs. Overall, the executive says that by 2024, the combined firm will have 11,000 more employees than if both companies remained independent. And Legere adds that the 5G economy is estimated to generate $275 billion in investment and produce $500 billion in economic growth including the addition of 3 million new jobs. T-Mobile itself will spend $40 billion over the first three years following the merger. The money will be used toward expanding the company's network and its business.


T-Mobile has been through a similar test before and passed with flying colors. Back in 2013, when T-Mobile decided to buy MetroPCS, the naysayers were predicting 10,000 people would lose their jobs once the deal closed. Since then, T-Mobile has added tens of thousands of jobs at the pre-paid carrier, doubling the number of subscribers and stores.

And for those who worry that cutting the number of major U.S. carriers by 25% will reduce competition and lead to higher prices, there is something else to consider. With the combined T-Mobile-Sprint becoming a stronger competitor to Verizon and AT&T, the deal could keep the nation's two largest carriers from raising their prices.

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6 Comments

1. Derekjeter

Posts: 1448; Member since: Oct 27, 2011

People will lose their jobs, the merger still won’t help any of them improve their s**tty network, prices will go up, less competition, I can go on. I pay $30 a month perline with Verizon. My bill is $162.38 for 4 lines with insurance on unlimited. I garrantee they won’t be close to that pricing. Nothing good will come of it.

6. talon95

Posts: 981; Member since: Jul 31, 2012

What do you mean. I pay less than that on T-mobile, I pay $120 with tax and they made my 10gig per line unlimited a long time ago, plus i get a lot more, free calling to Canada, free roaming in Canada, T-mobile Tuesday, free Netflix, cash back for unused data, and best of all Jump on Demand. I'll never go back to Verizon, they're NOT EVEN CLOSE. We need 3 major carriers, not 2 majors and a bunch of small carriers. If Sprint goes bankrupt then this whole story about more carriers goes up in smoke anyways. And Sprint / Tmobile customers want good 5G and that won't happen for either one if they don't merge. Even Verizon customers need them to merge so that there is some serious 5G competition that will drive down prices. Do you work for Verizon?

3. rossy

Posts: 16; Member since: Aug 23, 2013

I will give T-mobile benefit of the doubt. So far they have been fierce competitor against att and Verizon. Sprint's spectrum will help t-mobile compete

4. Mattprendo

Posts: 2; Member since: Jun 26, 2018

I have 4 lines too but with T-mobile. the bill is $160 with unlimited data, Nextflix and taxes included. I also get a $10 rebate each month for each line that doesn't go over 2 gig of data, so my monthly bill ends up being $126/month. Let it go through, Sprint if not brought by will wind up becoming worse then it is.

5. RandysBuddy

Posts: 11; Member since: Jul 08, 2015

Fixed wireless and TV streaming isn't anything new. In fact, it's very commonplance service and technology in third-world countries which lack a robust mining (copper in particular) industry. As an example and across europe, aluminum is plentiful... But if you want a Copper Cat-6 Ethernet Cable, you have to beware that it's not alumnimum cable with a thin coating of copper. Streaming TV is very cheap and doesn't require heavy capital investment.

7. maximuslyricus

Posts: 6; Member since: Dec 07, 2015

You think I believe Legere? Not! T-Mobile and Sprint were talking different tunes before this proposed merger. Now, they act like they won't be able to build out 5G and create jobs unless they are allowed to hook up. It's a lie! If Sprint can't survive on its own, then let someone else take them over, so that we can maintain a real competitive balance in the American wireless injury. Just like T-Mobile changed its business model to become viable and thrive, Sprint can do the same. It's simply a matter of expectation and internalizing the notion that you don't have to have the whole pie, but a big enough to keep you healthy. T-Mobile and Sprint have kept Verizon and AT&T honest (admittedly out of necessity), and now the American consumer has benefitted greatly. Now, T-Mobile wants to morph into Big Red and Ma Bell, and the government should not allow that to happen. All the fear tactics about Sprint going belly up should be taken with a huge grain of salt. People have been saying the same thing for the better part of the last decade (probably more), and Sprint keeps chugging along. They used to say similar things about T-Mobile. Let Sprint get in line, and if they can't figure it out, let someone like Dish Network take them over and keep real competition here in the Americas.

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