The $26 billion merger of T-Mobile and Sprint, the nation’s third and fourth largest wireless companies, comes with a hefty price tag for consumers, no public benefit and a loss of 30,000 jobs across America. This merger is poised to have significant impact on low-income consumers and the decimation of industry competition in major urban areas.
In Philadelphia, the “new T-Mobile” would represent 46% of consumers in the wireless market, becoming the dominant wireless service. This would also coincide with the shuttering of 65 store closures in that area alone. Statewide the merger would lead to 168 stores closing and a loss of 635 jobs.
Communications Workers of America (CWA) is opposed to the merger as it currently stands. The union is calling on regulators to oppose the merger unless commitments to protect jobs and consumers are made, workers’ rights are respected, and public interest benefits are verifiable and enforceable. CWA District 2-13 Vice President Ed Mooney stated, “For us, this is about jobs and the commitment these companies have made to the community and their employees. This deal leads to higher prices for consumers, job losses, and accelerates the off-shoring of jobs, while corporations walk away with record profits. This just a bad, bad, bad deal.”
On top of the dearth of public benefit that the T-Mobile/Sprint merger would pose to consumers, workers and their communities have much to lose from this merger. 30,000 jobs nationwide would be eliminated in this merger and wages across the industry would suffer from the reduced competition. When companies like T-Mobile and Sprint bring in more and more profits for shareholders at the expense of the communities they serve, corporate greed wins, economic inequality grows, and the system is further rigged in favor of the wealthy few.
Low- and moderate-income consumers who purchase prepaid wireless plans would stand to see a 15.5% increase in prices, according to economists’ estimates, and postpaid plans could see an increase of 9.1%. Consumers in urban areas and major cities like Minneapolis, Miami, Los Angeles and others would see this “new T-Mobile” have an outsized impact on their wireless provider options.
Contrary to what T-Mobile and Sprint have been saying in the media, these companies do not need to merge to deploy a 5G network. In 2018, T-Mobile told investors that even as a stand-alone company they would build 5G networks in “hundreds of cities” across the country, with a planned delivery of a nationwide network by 2020.
Meanwhile, consumers in rural America would see no significant change. T-Mobile’s acquisition of Sprint would not expand high-speed broadband and internet access to rural areas. This means that 46 million Americans would be left without access to high-speed internet. The T-Mobile/Sprint merger is a No-Win solution for Pennsylvania.
For moreinformation visit https://www.tmobilesprintfacts.org/