Democrats question pledges in $26.5B T-Mobile-Sprint deal

Associated Press

WASHINGTON

Democratic lawmakers challenged top executives of T-Mobile and Sprint on Wednesday over their pledge not to raise prices for wireless services or hurt competition if their $26.5 billion merger goes through.

At a hearing by a House committee, the two executives defended the deal, which would combine the nation’s third- and fourth-largest wireless companies and create a behemoth about the size of industry giants Verizon and AT&T.

Committee members from both parties fretted about the potential impact of a T-Mobile-Sprint merger on rural customers and carriers in rural areas that strike deals with major wireless companies.

Many of the lawmakers on the Energy and Commerce subcommittee represent rural areas and small towns, and they voiced concern over jobs that could be lost in the merger in the companies’ call centers and other facilities.

T-Mobile has committed to federal regulators, who must approve the deal, not to raise prices for three years following the merger.

But Rep. Frank Pallone, D-N.J., chairman of the full Energy and Commerce Committee, said he isn’t sure that Trump administration regulators would be willing to hold T-Mobile to that promise.

“How can we be sure that consumers who can least afford to pay more are not harmed by the merger?” Pallone asked.

Congress doesn’t have authority to rule on the merger, but lawmakers can ask pointed questions and raise concerns to regulators who are reviewing it. Now that Democrats control the House of Representatives and the Energy and Commerce Committee, they have convened the panel’s first merger-review hearing in eight years.

T-Mobile US CEO John Legere and Marcelo Claure, Sprint Corp.’s executive chairman, defended the merger and said American consumers would get more and pay less. Legere said T-Mobile’s analysis shows that consumers would save $7 billion to $13 billion a year by 2024.