House Democrats argue against T-Mobile-Sprint merger in letters to FCC and DoJ

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The proposed merger of T-Mobile and Sprint is getting some more opposition.

A group of Democrats are sending letters to the FCC and Department of Justice urging them to block the T-Mobile-Sprint merger. Rep. Rashida Tlaib (D-MI) is leading the effort that also includes 36 House Democrats, which The Hill says also includes Reps. Barbara Lee (D-CA), Alexandria Ocasio-Cortez (D-NY), and Pramila Jayapal (D-WA).

The letters are being sent to Ajit Pai, FCC Chairman, and Makan Delrahim, head of the Justice Department’s Antitrust Division.

Tlaib says that she wrote the letter because she feels that the merger will result in higher costs and fewer jobs and that she needs to tell that to Pai and Delrahim. Her full statement to The Hill looks like this:

“The T-Mobile-Sprint merger is a gross example of corporate greed that will leave many working and vulnerable Americans with higher costs, lower wages, and less jobs. This merger stands to have a negative impact on constituents and districts like the one I serve, and Chairman Pai and Assistant Attorney General Delrahim must hear about why this merger is bad for Americans. I have a duty to ensure that people come before profits.”

This news comes nearly one month after several Democratic senators urged the FCC and DoJ to reject the merger, saying that it will lead to “dangerously high levels of market concentration” and that it will “likely cause Americans’ monthly bills to jump dramatically.”

T-Mobile CEO John Legere has been talking up the merger lately, saying that the combined T-Mobile-Sprint will have eight times more total network capacity than the two carriers do today and that the New T-Mobile will also offer increased outdoor wireless coverage to nearly 60 million rural residents by 2024. He’s also made a promise that T-Mobile will offer the same or better rate plans at current or lower prices than those offered by T-Mobile or Sprint for at least three years after the merger.

So far, the T-Mobile-Sprint merger has gotten approval from the Committee on Foreign Investment in the United States (CFIUS) and Team Telecom, which includes the U.S. Department of Justice, Department of Homeland Security, and the Department of Defense, which cleared the deal of any national security, law enforcement, or public safety issues. The merger has also been approved by 16 of the 19 needed state utility commissions.

T-Mobile and Sprint’s deal is still being reviewed by the FCC for any public interest issues while the DoJ conducts an antitrust review. T-Mo and Sprint remain confident that their deal will be approved in the first half of 2019.

Source: The Hill

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  • Android_God

    All the TrumpTards can now cry about liberals below:

    • riverhorse

      Whatever money you have left over from your drug binges, you should donate to Hillary and Bernie– they need your help for 2020.

      • Delta D

        You could see the puffy sleepy eyes in his avatar, practically nodding off the Vicodins while taking a selfie lol! “WAHH WAHH! I NEED HEALTHCARE! WAHH! PAY FOR MY SCRIPT! WAHH!”

  • ohhh look .. standard liberal comment… An insult.. surprised you didnt cry racism

    • Steven

      HAHAHAHA, too funny, agreed

  • ryan

    I don’t care about this merger but I’m here to watch all of the Hillary lovers cry haha!!!

  • Me

    The recent Disney / Fox and now historical
    by comparison Comcast / Universal / NBC mergers were MUCH more gross examples. Neither received as much scrutiny and opposition as this deal. If it doesn’t get government approval, I’ll be shocked.

    • steveb944

      Agreed. Where the hell was all the outcry then?

  • because, of course they are lol Anything to cause a ruckus these days….. 0hh how disgusting Politics can be

  • riverhorse

    Same loons that forbid tech companies in Cal from having employee cafeterias, blocked Walmart & Amazon in NY(the latter supposedly for eventually driving up RE prices & not hiring enough locals-this before Amazon ever got here, and…fyi the area in question for Amazon was a desolate industrial/warehouse stretch…}
    Meanwhile the loon’s constituency- undocumented households with the maximum number of kids for welfare benefits– has grabbed a foothold in Elmhurst section and turned it into a dirty, run-down eyesore– and blocked two major projects:
    1. the City from giving them a Business Improvement District grant
    2. Target
    reason given for both: would result in higher RE prices and extra pedestrian / vehicle traffic

    At this exact point in time, the Democrats are literally destroying the country. There is no other way to put it.

    Karma: Bezos given a big lesson by his own base.

  • “gross example of corporate greed”

    Increasing profits for your investors is required and rewarded. Mergers like this will streamline the businesses and increase profits. Why would they expect for-profit businesses to be run as non-profits? Corporate Greed will come as prices increase, however they don’t know how the market is going to react. Is ATT and Verizon going to decrease prices and have an overall lower rate throughout the market due to having a third competitor. The merger adds to competition, not removing competition.

    At this point Sprint and T-Mobile are not competitors to ATT and Verizon due to their limited network bandwidth. The merger would help them compete against the big two that are monopolistic in nature.

    • StevenM

      Neither Ocasio-Cortez or Tlaib are bright enough to comprehend this.

  • trife

    So wait, we’re for the merger now that Trump is in office? Funny how tunes change over the years….could’ve sworn almost everyone was opposed to this merger every other time it had been brought up.

    Figures. Trump voters aren’t the brightest bunch.

    • purgeiscoming

      Awwww…Is somebody still pouting? Only six more years, bro…

  • Trevnerdio

    You know the drill – as long as there are more jobs, stifling innovation and technological advancement is a-ok!

  • Acdc1a

    That’s all politicians Vinny…but you just keep letting them put you in an us vs. them camp. It’s what THEY want.

  • DILAW IDDAHLA

    What do you want? Forget politics, just focus on this merger and why you think this merger is a good move. You think this merger will decrease prices? Create jobs or even maintain the same jobs that exist for both companies? Or you think it’s better to have less companies in the industry for competition?

    • purgeiscoming

      Forgetting politics, I think this merger will be good for a few reasons:

      The first is that it will position the combined company to compete more effectively at bringing 5G to more people more quickly. 5G is really the way we make Comcast and Time-Warner compete in ISP space, with a true wireless solution for home internet.

      Secondly, somebody will ultimately buy Sprint or its assets. What purpose does allowing it to fail serve? Their customers will eventually mostly migrate to T-Mobile anyway if industry trends are any indicator. T-Mobile is taking on their debt, giving their employees (mostly) a soft landing and is prepared to leverage their spectrum assets almost immediately. Would it be better for their spectrum holdings to sit idle for years, or even decades while the market attrits them to irrelevance?

      Three major carriers is still as much if not more choice than most people have for internet, power, or television. If AT&T and Verizon are the two big kids on the block and their two challengers are miles behind them, are they more or less incentivized to compete than if they have an 800lb gorilla offering a better deal?

      • BillCosby

        I can’t fault TMobile from looking at the industry and saying “our $70 internet plans are unlimited and an average person uses 4Gb of data, how can I sell more rateplans to computers at people’s homes”….

        But if it was the way of the future, how come more people don’t have USB sticks?

      • DILAW IDDAHLA

        I understand how you are looking at this merger. Sounds good, but in reality when 2 companies merge a lot of people lose their jobs. When you have less competition even going from 6 to 5, prices go up. This merger is good for the top executives. It’s good for the employees that will end up staying, but not the ones that will eventually lose their jobs. That’s just what I think

        • LC

          Normally I would agree with this, however there are a couple things with this merger.

          1) The network/engineering teams will have to grow. Not only for the network conversion of Sprint’s network over the next few years, but then also for building out the 5G network.

          2) Care. The large majority of Sprint’s customer care is outsourced and uses Partner services. T-Mobile does have two partner locations for off hours, but the majority of their Care team is on shore here in the States. With the launch and expansion of the TEX model, which they’re expecting Sprint to adopt should the merger close, a huge number of Care reps will need to be brought on to support the influx of Sprint customers and to be able to move away from the Partners that Sprint is currently using.

          I don’t disagree that there will be redundancy in certain groups within various orgs, but I think there are some real job generating needs if this were to be approved.

        • Eric Davila

          I think your making an assumption here. While I agree that their will have to be some sort of transition team available even for the merger, that’s not a long term solution and this situation has broader implications. Those jobs will be temporary. The extent of jobs are not limited to customer service, but also overlapping functions that exist at store locations that will also be eliminated. Some of those jobs that were specifically created because of Sprint being a competitor will not transition over because their is no need. Also, the 5th largest carrier is US Cellular. It has nowhere near as many subscribers as Sprint or the coverage area. If you let this merger go through, it will only serve to exacerbate the terrible market conditions and lack of competition by furthering the divide from T-Mobile/Sprint merger and US Cellular. That makes the other lesser powerful competitors vulnerable. Ideally, imo we should have around 5-6 competitors, but having less never works in the favor of consumers nor the workers. All your going to do is create another AT&T scenario again, where they became a monopoly of the telephone industry decades ago and had to be broken up. So in all, the only thing I see many people taking away from this is immediate gratification of them believing it will help their coverage, but they’re not taking into consideration the long term effects of how this could lead to crony capitalism and the destruction of the free market

  • BillCosby

    Until DoJ comes up with a new way (and formula to replace “HHI”) to measure competitiveness within an industry, this merger wasn’t going anywhere… even on the day it was announced.

    It’s just simple math.

  • Android_God

    BOO HOO HOO snowflake

    • Meatman1976us

      Snowflake is a term used for liberals and has been for a long time

      • Eric Davila

        Actually snowflake can apply to everyone. Tomi Lauren is a prime example. Calls everyone a snowflake and pretends to be for free speech, but then she was quick to cry because someone dared to take a knee omg the how dare you peacefully protest lol. Notice how its always you have the right to protest, but not like “that”

  • Deadeye37

    Here’s the way I look at it. Sprint is drowning in debt, is very weak, and doesn’t have the means to get the spectrum needed to build out a solid 5G network. We’ll see Sprint slowly die out in a few years if this doesn’t go through, in which case we see T-mobile still fight, but weakly against an even stronger AT&T & Verizon since I’m sure they will quickly gobble up all the resources Sprint will leave behind when they declare bankruptcy. However, if they combine now, T-mobile will fight Verizon & AT&T more effectively and be a stronger competitor.

    • Kevin

      Sprint will be bought out before they go bankrupted, hopefully bought out by a different player and not by T-mobile; they just need to lower the asking price. Sprint has a lot of spectrum in 2.5ghz and for 5G. All the carriers are in a lot of debt, not just Sprint.

  • PsycheInfidelic

    Dems want concessions. They want the workers to be able to have a closed shop union and won’t allow this merger until T-Mobile agrees to that. They need those union contributions coming into the dem party. That is the way the game is played.

  • I thought Ilhan Omar was the only ISIS Democratic Socialist in our government, now we got another Islamic Rep. Rashida Tlaib?