T-Mobile US Inc rules out price increase if allowed to acquire Sprint for $26 billion

T-Mobile’s $26 billion acquisition of Sprint has already gained approval from a national security panel headed by the Treasury Department. An antitrust review by the Justice Department and the FCC remain its only hurdles.

In a communication to the U.S. Federal Communications Commission, T-Mobile US Inc has disclosed that if it gets the go-ahead to acquire rival Sprint Corp for $26 billion, it would not increase prices for the next three years, with few exceptions.

In his letter to the FCC, T-Mobile’s CEO John Legere requested the U.S. government to move forward “expeditiously” in reviewing the merger of the two wireless carriers. The letter was aimed at allaying fears that the deal would mean higher prices.

“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,” reads Legere’s letter.

Consumer advocates have voted against the merger saying since Sprint and T-Mobile have a big market share in prepaid plans favored by the poorest wireless customers, their merger will disproportionately hurt them.

The letter comes a week ahead of a meeting between the two committees in the House of Representatives — Energy and Commerce and Judiciary, to discuss the deal.

A hearing has been set for February 13.

Legere and Sprint Chairman Marcelo Claure have agreed to testify in it.

In a separate government filing, T-Mobile noted that while it would attempt to fend off price increases it may have to adjust rates to pass through costs like taxes or third-party fees that “are not within the control of New T-Mobile.”

Further, both companies have also pledged to build more customer care centers which will create up to 5,600 jobs; they have also said, they expect the merger to create more than 12,000 jobs in small towns and rural communities.

Ther deal has already won approval from a national security panel headed by the Treasury Department.

Currently it is undergoing an antitrust review by the Justice Department and the FCC; the latter will have to decide whether the deal is in the public interest.

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