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Home - , , - NWIDA Speaks to FTC, DOJ Regarding Metro by T-Mobile Dealers' Concerns

NWIDA Speaks to FTC, DOJ Regarding Metro by T-Mobile Dealers' Concerns

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The ongoing scuffle between T-Mobile and its Metro by T-Mobile independent dealers seem to be getting serious. 

On Friday, the National Wireless Independent Dealer Association (NWIDA) revealed that they spoke with the corresponding government agencies and lawyers regarding the ongoing dispute about the new policies that went live earlier this month. 

According to NWIDA President Adam Wolf: 

"NWIDA has been in contact with the Federal Trade Commission (FTC), the US Department of Justice and with Washington, DC lawyers --- well known and highly regarded in antitrust and telecom distribution issues. Based on our conversations to date, we will continue our ongoing discussions with them to help determine the best resolution for the independently owned Metro by T-Mobile dealers."

Wolf shares that some dealers were afraid of speaking about their concerns publicly since T-Mobile may try to take away their stores. As for NWIDA, it is confident about voicing out these concerns since they do not own or operate any stores. 

Because of the ongoing debate regarding the new policies, thousands of dollars are being lost. And while both parties are unable to make an agreement, the issue is not going away. 

The concern is over the changes that T-Mobile implemented on the compensation that its dealers receive. Among these changes, which went live on October 1st, is the removal of any compensation on a renewal phone payment. 

Another change that T-Mobile wanted its dealers to adapt to was that they should source 100% of their accessories from one vendor. The Metro dealers were unhappy about this since this would add as much as 20% to the cost of the accessories. Not being able to buy their accessories from other vendors would mean a huge loss for the dealers. This change is said to be implemented in January. In the meantime, dealers were permitted to sell their on-hand inventory until the end of the year. 

In September, an online petition circulated among dealers affected by the new changes. The petition, started by the Metro Dealers Unity Group, gained around 2,150 signatures. They estimate about 8,000 stores that would be affected by the changes. 

One of the concerns that dealers had is that T-Mobile is treating them like a franchise, even though they are independent dealers. This adds to the notice that Metro by T-Mobile sent out earlier this year to non-exclusive dealers. The notice told them they would no longer be allowed to sell Metro by T-Mobile products if their stores carried other brands too. Metro by T-Mobile implemented a 120-day termination notice to non-exclusive dealers. 

Wolf believes that if these concerns are not properly addressed by T-Mobile, it "will severely impact the profitability of these dealers to the point where they may need to fire employees, to the point that they may need to close and go out of business."

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    1. wow what a story corporate greed at its best my heart goes out to these small businesses owners that built up that brand just for the carrier to rob them

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  2. Now these Metro dealers want to complain? Why didn't they protest harder BEFORE the merger was approved? My guess is that many were drinking the T-Mobile Kool-Aid. Anyone not drunk on the Kool-Aid could have seen this coming.

    I was always against the merger, it happened anyway, so now I move on.

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