T-Mobile and Sprint merger gets backing by FCC Chairman Pai

Shawn Knight

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In context: Those living in rural areas of the country often only have access to one Internet service provider and usually, it’s very slow service like DSL. 5G is poised to change that with the promise of speedy home broadband service and the new T-Mobile aims to lead the way.

FCC Chairman Ajit Pai on Monday said he would recommend to his colleagues that the commission approve the merger of T-Mobile and Sprint.

Commitments by the combined company were instrumental in winning Pai’s support. The nation’s third and fourth largest wireless providers, for example, have committed to deploying a 5G network that will cover 97 percent of the country’s population within three years of closing on the merger and 99 percent within six years.

The company’s network will also cover 85 percent of rural Americans within three years and 90 percent within six years. Furthermore, T-Mobile and Sprint promise that 90 percent of Americans will have access to mobile broadband service at speeds of at least 100 Mbps and 99 percent will have access to speeds of at least 50 Mbps.

T-Mobile and Sprint have additionally decided to divest Boost Mobile in a bid to address potential competitive issues in the prepaid wireless segment. They’ve also promised not to raise prices for a period of at least three years.

T-Mobile and Sprint in April 2018 finally reached an agreement to come together after years of rumors on the matter. Should the two companies not make good on their promises, they’ll face significant penalties including fines of billions of dollars.

The FCC plans to draft an order to resolve the merger matter in the coming weeks.

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This merger DOES make sense and I do support it... but... crap now Ajit Pai supports it so maybe there is something wrong with it. :/
 
I usually strongly dislike large mergers but with the cell companies it comes down to available bandwidth. If you have 3 companies who all have to split a few blocks of frequency you have less bandwidth, and potentially far less range (depending on which frequency each company gets). So this makes sense.

One of the major reasons verizon has been known as having the best coverage for decades now is because of the frequency band they own. It allowed them to use simething like 1/2 or 1/3rd the number of towers that sprint had to use. Not a big deal in urban areas where you have to deal with capacity more than range, but out in low traffic areas it was far cheaper for verizon to cover the area than it was for sprint to cover it.
 
How about no increase in pricing except for adjustment for inflation?

3-year of protection, then they can freely raise the price to similar prices to AT&T and Verizon is short term protection but long term hurt... especially if they can freely do whatever they want after 3-years.

They should also have to divest MetroPCS by T-Mobile rather than Boost.
 
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