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Sprint-T-Mobile Merger: CWA Pushes All 50 States to Investigate

Investigation

The Communications Workers of America (CWA) has asked all 50 state attorneys general (AG) to investigate what it says would be widespread negative impacts from T-Mobile’s planned $26 billion acquisition of Sprint.

Chris Shelton, CWA president, wrote letters to the AGs pressing for deeper investigations into the merger. The letter includes an analysis of job losses in the top 50 metropolitan areas.

Neither Sprint nor T-Mobile could be reached for comment. T-Mobile’s website touting the “New T-Mobile” says the merger would be a “job creator from day one.”

Last week, the Federal Communications Commission said it needs more time to review the deal and paused its 180-day process for consideration.

CWA's Chris Shelton

CWA’s Chris Shelton

“The proposed T-Mobile-Sprint merger proves to be a much greater threat than benefit to consumers and workers,” Shelton said. “We hope that state attorneys general will heed our calls for a thorough investigation in order to protect both jobs and the competitive wireless market.”

The merger would result in the loss of more than 28,000 jobs across the country, according to the CWA. About 24,000 jobs would be eliminated as a result of overlapping retail store closures at both postpaid and prepaid Sprint and T-Mobile locations, and about 4,500 additional jobs would be cut due to duplicate functions at corporate headquarters in Overland Park, Kansas (Sprint), and Bellevue, Washington (T-Mobile), it said.

“Furthermore, the proposed horizontal merger will eliminate market competition and increase concentration in the national and local markets for mobile telephony, broadband services, and prepaid wireless services,” it said. “As a result, consumers will see increased prices and less innovation.”

The letter says claims by T-Mobile and Sprint that the deal will accelerate the move to 5G wireless “actually contradicts their statements to their own shareholders.”

“Just last month, T-Mobile told Wall Street that ‘our advancements in network technology and our spectrum resources ensure we can continue to increase the capabilities of our network as the industry moves toward 5G’,”  it said. “Sprint’s CEO Marcelo Claure has been emphatic that Sprint is ‘very, very well-positioned’ for 5G. There is also zero evidence that rural American will benefit from the merger.”

The CWA also said the merger raises “serious national-security concerns regarding possible integration of Chinese government-owned Huawei and ZTE equipment in their networks.”


One comment

  1. Daniel Marshall September 18, 2018 @ 6:11 pm

    I feel the merger will create what I would call a tri opoly which would probably raise the average costs of a persons cell phone by 100%.

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