T-Mobile today continued its effort to get its merger with Sprint approved.
T-Mo has pledged that it won't increase prices of its rate plans for three years if its Sprint merger goes through. "New T-Mobile will make available the same or better rate plans as those offered by T-Mobile or Sprint as of today's date for three years following the merger," T-Mobile wrote in a letter to the FCC.
CEO John Legere penned his own letter to FCC Chairman Ajit Pai to back T-Mobile's price pledge, saying that if T-Mobile were to break its promise, it would lose customers and damage its reputation. "We are the Un-carrier. If we broke faith by raising rates and cutting back benefits, we would lose our loyal customers and destroy the future of our brand," Legere wrote. "I want to assure you that we would never do this."
With this commitment, T-Mobile says that both T-Mo and Sprint legacy rate plans will continue as New T-Mobile plans for three years, or until better plans that offer a lower price or more data are made available.
The carrier did say that it may have to adjust legacy plans to pass through cost increases in taxes, fees, or surcharges, or due to changes from third-party partners that are included in the rate plans, because these changes aren't within New T-Mobile's control. The legacy plans may also be changed to modify or discontinue third-party partner benefits based on changes in the terms of the offer made by the third-party partner.
These letters from T-Mobile and its CEO are meant to counter opponents of the T-Mobile-Sprint merger who say that the deal will lead to increased prices for consumers. Some argue that by reducing the number of major U.S. carriers from four to three, there will be less innovation and price competition.
What are your thoughts on the T-Mobile-Sprint merger?
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