Democratic Lawmakers Challenges $26.5B T-Mobile-Sprint deal pledge

As the T Mobile and Sprint merger is ongoing, the Democratic lawmakers are challenging the pledges given by the companies. The Spring and T-mobile pledged not the increase the prices or rig the competition once the deal goes through. T-Mobile said that after the deal goes through, they won’t raise the costs of their plans for the next three years. But, Rep. Frank Pallone, D-N.J., chairman of the House Energy and Commerce Committee said that the current trump administration might not force the pledge and T-Mobile may get a green signal to increase the prices.

Democratic Rep. Frank Pallone asked how the government is so sure that the T-Mobile will not increase the price and harm the users that can’t afford the cost, in the House subcommittee hearing today. Currently, T-Mobile and Spring are counted as the third and fourth biggest telecommunication companies in the United States. Their merger has gotten up to the value of $26.5B and could challenge the industry leaders like Verizon and AT&T. in the United States, Congress does not have any ruling on this merger, but the congress members can ask some tricky questions about this merger in the forum. That’s why the Democrats have asked for the merger-Review after eight years.

Executive Chairman of Spirit corp. and T-Mobile CEO defended the merger and said that the customers of both the companies would get more benefits of this merger. T-Mobile was the first company to take drastic consumer-friendly steps. They were the first to abolish the two-year contract system and brought back unlimited data plans for cellular users.  The Democratic lawmakers said that the merger would remove the competition and T-Mobile might remove those benefits and the consumers will have to pay more for using cellular services from these two companies.

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Jason Amato

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