Mobile pledges three-year price clampdown if merger is approved

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T-Mobile and Sprint announced its merger last April and now that the government shutdown is over, the FCC has resumed its review of the proposed merger.

With those caveats, T-Mobile said it would not object to being held to the three-year price guarantee as a formal condition of the FCC approving the merger.

However, a number of consumer groups oppose the deal, arguing that eliminating one of the four largest carriers would reduce competition, cost thousands of jobs, and lead to higher prices for consumers. T-Mobile CEO John Legere has sent a letter to the agency to address the concerns surrounding the deal. "With its business-friendly environment, diverse workforce and strong sense of community, the Greater Rochester area is a flawless location to build another New T-Mobile Customer Experience Center".

T-Mobile is still trying to complete its acquisition of Sprint and merge the two into the New T-Mobile.

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But from another perspective, Clyburn's involvement with T-Mobile serves to inoculate the company from critics who argue the deal will be largely bad for consumers because it will mean the elimination of a competitor from the USA wireless market. The company also thinks that all wireless consumers would be better off after the merger as AT&T and Verizon would most likely reduce prices also to remain competitive.

Some analysts say the fact that T-Mobile felt compelled to offer a price freeze is evidence that ordinary market pressures would encourage the combined company to raise prices. In this, he promised to keep rates "the same or less" than the current plans by T-Mobile and Sprint, for at least three years. T-Mobile and Sprint will also need approval from the Justice Department to move forward with the merger.

“I want to reiterate, ” reads the letter, “.T-Mobiles rates are NOT going to go up. Sprint's (s) stock price, up 16% over the past year, was unchanged.

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