Feb 5th, 2019

One of the reasons why regulators in the past have been apprehensive about deals like AT&T merging with T-Mobile, it is because they are worried about creating a situation where one carrier will dominate the market, thus resulting in almost monopolistic-like behavior where customers are subject to the pricing whims of the carrier.

T-Mobile understands this concern and is looking to reassure its customers that won’t happen. According to the carrier’s CEO John Legere, he has promised in a letter to the FCC that the company would not be hiking up their prices should their deal with Sprint go through. Legere also suggests that they might even be able to offer better rate plans. The letter reads:

“While we are combining our networks over the next three years, T-Mobile today is submitting to the commission a commitment that I stand behind — a commitment that New T-Mobile will make available the same or better rate plans for our services as those offered today by T-Mobile or Sprint.”

There is a catch though, and that is based on the letter, Legere is only promising 3 years of no price hikes. There is a chance that after 3 years, things could remain the same, but we wouldn’t necessarily bet on it. There have been some who have opposed the merger, claiming that since Sprint and T-Mobile have a large market share of prepaid customers, the merger could end up hurting those customers.

Whether or not these concerns will come true remains to be seen. The deal is currently under review by regulators and has yet to be finalized.

Source: Reuters

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