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T-Mobile Has Requested Its MVNOs to Show Their Support for Sprint Merger

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There's only a few days left until you can send your concerns to the Federal Communications Commission (FCC) with regards to the proposed T-Mobile-Sprint merger. And ever since the agency announced that it would be opening its doors to both sides of the camp, there has been a few submissions. One of those is from Mint Mobile's CEO, who explained why the T-Mobile-Sprint merger is actually a favorable one.

But it looks like it's not enough. According to reports, T-Mobile is politely asking its MVNO partners to pitch in for them.

The original report from Reuters shows that T-Mobile has reached out to smaller providers that use its network to show their support for the merger. Some of these MVNOs received an email from the wireless provider, which has detailed different ways for them to express their agreement with the merger. The suggestions include writing an article for newspapers or other media outlets, and to directly send a positive comment to the FCC. Reportedly, T-Mobile also advised its partners to point out how the merger would help with the 5G network buildout.

Collectively, T-Mobile has over 30 MVNO partners in the country. It is not stated whether the carrier reached out to all of these MVNOs. Some MVNOs, like Consumer Cellular, have admitted to being contacted by the wireless provider through an email. But like the other MVNOs, the CEO does not feel pressured by T-Mo's request. At the same time, they have not yet decided whether or not they will be submitting a comment to the FCC.

It's no surprise that T-Mobile is keen on having the merger go through. But its recent action might make the carrier seem like it is abusing its position as a service provider. As a matter of fact, it looks like there is a little coercion involved.

With the FCC's deadline for public comments set on August 27th, there could be more MVNOs to show their support for the merger. This is only the beginning of the FCC's review process. It still has several months before it makes a final decision on the status of the merger.



Source: Reuters   

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14 comments:

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  1. What's wrong with a little astroturfing between friends?

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  2. lets see how many of these MVNOs get blackballed if they don't support them.

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  3. With the current Potus admin I see it going through. Sprint will die the death it so badly needs and Tmobile will finally be able to go head to head with Att/Verizon . Whether its innovation will taper off and prices go up as feared remains to be seen.

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    Replies
    1. I am not willing to take that bet!

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  4. I wonder if Sprint's doing a little armtwisting with its foster children too?

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  5. T-mobile always keeps it classy.

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    1. Yes. Verizon, on the other hand puts profits ahead of the lives of firefighters and homeowners during CA wildfire emergency operations.

      https://www.breitbart.com/tech/2018/08/22/report-verizon-throttled-fire-departments-unlimited-data-plan-during-wildfires/

      Delete
  6. Sprint is Tmobile's largest prepaid competitor. Once they are one company, they will raise wholesale prices to MVNOs to drive them out of business and force customers to join Boost or MetroPCS if they want to continue using the same phone.

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  7. There is still time to voice your opinion to the FCC regarding the Sprint Tmobile merger. Most people will use the Express version, https://www.fcc.gov/ecfs/search/proceedings?name=18-197 I encourage you to email the FCC Commissioners as well, https://www.fcc.gov/about/leadership

    The full text of my comment is below:

    A combined T-Mobile / Sprint would own more spectrum in the USA than anyone besides the US government.

    In the first quarter of 2018, before the agreed merger, both Tmobile and Sprint were boasting they were building robust 5G networks and would start bringing them to market 2019.

    The value of Sprint's 2.5 GHz spectrum for 5G can not be overstated. It is the only block of privately held spectrum capable of propagating 5G over a wide area.

    Both Tmobile and Sprint are owned by huge companies with extremely deep pockets. They are well equipped to pay for the build out of a 5G network.

    History has shown large cellular networks find more value in market segmentation than reducing marketing costs by uniting under one brand. For example, AT&T kept the Cricket brand, Tmobile kept the Metro brand and Sprint kept Boost and Virgin brands seperate.

    Since their technologies, GSM and CDMA, are incompatible, their coverage overlaps and carriers prefer to maintain separate brands; their is no ability to reduce costs via merger.

    The only benefit Tmobile and Sprint derive via merger is elimination of competition allowing them freedom to raise prices. Sprint has been especially aggressive cutting prices forcing competitors to keep prices down. Tmobile has aggressively offered unique services to attract consumers. All the proconsumer policies end with merger.

    Tmobile and Sprint are so eager to merge they are pressuring MVNOs, who are dependant upon Sprint or Tmobile's network to survive, to send in comments and otherwise voice approval of the merger with the implied threat of losing the service agreement if the MVNOs dont support merger.

    Sprint and Tmobile
    dominate the prepaid marketplace. They control the vast majority of prepaid customers directly or indirectly through MVNOs.

    Over the last several years Tmobile's MetroPcs brand and Sprint's Boost brand have been the most aggressive on price in the prepaid marketplace offering free or heavily discounted phones and unlimited talk, text and 4G data for $20-25 per line on family plans. All this ends with merger.

    Working class Americans, who are least able to absorb price increases, will suffer the most from merger. The effect of reduced competion is always higher prices.

    As businesses, Sprint and Tmobile are in the marketplace to earn profit. Combining the two low price carriers elminates their incentive to keep prices low. Since ATT and Verizon charge higher prices, consumers will have no alternative but to pay more to the combined Tmobile and Sprint.

    The four carrier model has served America well. Most European countries have four major carriers. Competion keeps communication and data costs down supporting economic growth and is especially vital to small businesses.

    Merger will suppress innovation and increase costs. The only beneficiary to merger are Tmobile and Sprint shareholders.

    I earnestly hope the wise FCC Commissioners will maintain our competitive marketplace and continue putting the American people first.

    Thank you for your consideration.

    Sincerely,

    Jim Worrall
    www.JimWorrall.com

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    1. Thank you, Jim. You have convinced me all the more of the necessity of this merger to improve the US Marketplace.

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  8. Typical John legere

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    1. right! Legere is nothing more than a loud mouth snake oil salesman that parades around like he is some sort of crusader for the little people.

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    2. You forgot how the UnCarrier moves changed the whole wireless market for the better. And how much T-Mobile grew as a result.
      Results matter, and John was the leader who directed that successful campaign.

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