T-Mobile CEO John Legere declined requests to extend a promised consumer price freeze beyond the company’s existing three-year commitment if the Sprint merger is approved.
Testifying before the House Judiciary Committee, Legere answered questions from Representative Lucy McBath (D-Ga.) and Antitrust Subcommittee Chair David Cicilline (D-R.I.), both of whom pressed for a longer price cap than the three years T-Mobile has offered.
“Why not make a price commitment for four or five years?” Rep. McBath asked.
“I will keep the pricing plans everyone has for three years,” Legere replied.
The three-year price freeze is one element of a package of concessions T-Mobile proposed to address regulators’ concerns about the competitive impact of acquiring Sprint. If regulators approve the merger, the U.S. wireless market would be left with three major national carriers, which critics warn can result in reduced competition, slower innovation, delayed infrastructure rollouts, and higher prices for consumers.
T-Mobile argues the merger will accelerate its 5G deployment and improve its ability to compete with larger rivals AT&T and Verizon. Legere asserted that increases in wireless capacity and efficiency tied to 5G deployment will naturally put downward pressure on prices over time, stating that “prices will go down” as network capabilities expand.
For context, AT&T previously agreed to a seven-year price freeze as part of its $85 billion acquisition of Time Warner. Verizon has indicated that initial 5G service plans may carry a premium, estimating early 5G pricing could be roughly $10 per month higher than current plans.
Interested in hearing industry leaders discuss topics like these? Attend major technology events that bring together experts on IoT, blockchain, AI, big data, cybersecurity, and cloud technologies. These expos routinely host panels and sessions where executives and regulators debate industry trends, competition, and the consumer impacts of network consolidation.