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TracFone Shows Support for T-Mobile-Sprint Merger in New Letter to the FCC

The proposed merger between T-Mobile and Sprint has been the talk of the town for quite some time now. Although it's nowhere near getting the approval from the Federal Communications Commission (FCC), it is treading on.

And while various MVNOs have aired their concerns on the merger, there are others that have shown their support. One MVNO has recently joined the latter by showing its support on the merger between T-Mobile and Sprint.

TracFone Wireless, an MVNO with around 22 million customers in the country, has showed its support for the much discussed merger. As the largest MVNO in the nation, their support for the merger proves to hold a significant voice; despite the many who argue against it. One of the main concerns of those against the merger is that it would reduce the options for MVNOs. TracFone, as an MVNO that could be affected by this, believes otherwise.

In its letter addressed to the FCC, TracFone wrote that they believe "the merger would not only result in more rapid deployment of a nationwide 5G network, but also create a more competitive wholesale marketplace."

TracFone believes that there is currently a competitive wholesale market for MVNOs. The four MNO's in existence "are not equivalent alternatives in all markets" which TracFone can purchase network capacity from. As a matter of fact, neither T-Mobile nor Sprint have been able to offer enough coverage and/or speeds in rural areas.

With the merger between the two networks, there will be a "more rapid deployment of a nationwide 5G network with broader coverage, greater capacity, higher throughput and lower latency, the wholesale market place will be more competitive with three full service competitors rather than two." 

TracFone also believes that the increase in competition will greatly affect rural areas. MVNOs in these areas can access the excess capacity from the market place. Once the projected stronger 5G network is delivered, it will open opportunities for new markets, such as the Internet of Things, and many other wholesale services that run on 5G.

TracFone operates a series of MVNO brands throughout the United States. Among the brands it carries include Straight Talk, Walmart Family Mobile and Simple Mobile. TracFone is known to use the mobile network services of the major network operators in the country.

The proposed merger between T-Mobile and Sprint is currently being reviewed by the FCC, Department of Justice, and other government agencies. A decision is expected to be made early next year. Meanwhile, you can read TracFone's full letter to the FCC here.

Source: FierceWireless 


Comment Page :
  1. "TracFone also believes that the increase in competition will greatly affect rural areas."

    It's actually a decrease of competition for the remaining three. Prices will increase and there will be a glut of workers when they start laying off because of repetitive and overlapping jobs.

    TracFone likes the merger since they are the largest MVNO out there. Less competition for them in the long run means more margins and profits!

  2. It's an increase in competition from 2 to 3 viable carriers.

    As for prices, they'll only charge what the market will bear.

    In terms of petential unemployment, that's actually a problem with large societies as a whole.

    Diversity and overpopulation (relative to available weallth and resources) lead to a wholesale abandonment of social obligations towards one another, as we no longer have strong trobal ties binding communities together and instilling within people a sense of shared responsibility.

    People are left to struggle on their own, consequences and lives ruined be damned.

    And the thing is, corporations aren't actually reponsible for poor population management or he consequences thereof.

    The government is, especially when its authority since the civil war is founded upon the threat of armed oppression, and thus people/communities don't have the freedom to secede and seek alternative lifestyles once the robber barons (who pay for and write the laws) close up shop.

    After all, poor people in search of new opportunities can't just pick up and leave for the city, as the rising cost of housing (thanks to foreigners purchasing property as a physical bank account, as well as real estate speculation) will only put them into bankruptcy.

    Ultimately, society's just become too big and restrictive for people to adapt and change with, which was always the whole reason people were against concepts like "growth", "scale" and "mass immigration".

    And finally, Tracfone's just happy they won't have to purchase service from two redundant carriers with lackluster coverage, and that the quality of their T-mobile offerings will finally be viable for marketing and profit.

    Slim was playing the long game all along, and now he stands to benefit from there being a real alternative to everyone's least favorite duopoly.

    1. Jobless claims just reached their lowest point in history. Household net worth hit $107 Trillion. Stocks are at record highs. Companies can't find enough workers to fill job vacancies. Small business, manufacturer and blue collar worker confidence is soaring, along with consumer confidence.
      It's not government's responsibility "for poor population management or the consequences thereof" unless you live in China. This is the land of opportunity; it's not supposed to be the land of entitlements, one that crushed family unit ties and responsibilities via the "great society." Most poor people still have a choice:
      join a grievance group and lobby for more handouts; or get off the couch and leave the protest to find their own opportunities. Right now the latter is the viable option for most. Companies are hiring people with no skills and giving them full training and good jobs, a ladder to the middle class. Unemployment among blacks and Hispanics is at record lows.
      New T-Mobile will give rural folks a third, viable network option for wireless mobile service and home broadband. That is a very good thing.

  3. Tracfone has Long term contracts and enough customers to dictate terms to thw carriers. Smaller MVNOs will be squeezed out after merger.

  4. "TracFone likes the merger since they are the largest MVNO out there. Less competition for them in the long run means more margins and profits!"

    This anon already said it well enough. This is exactly what is going on. All the other BS in TracFone's letter is just a smokescreen intended to obscure this fact.

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