T-Mobile has been ordered to demonstrate that it did not provide false or misleading information to government regulators about its plans to shut down 3G services when seeking approval for its merger with Sprint.
In a ruling by the California Public Utilities Commission (CPUC), T-Mobile was directed “to show cause why it should not be sanctioned by the Commission for violating Rule 1.1 of the Commission’s Rules of Practice and Procedure for false, misleading, or omitted statements.” The CPUC alleges the carrier made inaccurate statements under oath regarding the timeline for discontinuing CDMA network services.
As a condition of winning approval for the Sprint acquisition, T-Mobile agreed to divest Sprint’s Boost Mobile prepaid business and other assets to Dish Network. The CPUC order approving the merger—issued on April 16, 2020—included conditions intended to reduce negative effects from combining two of the four nationwide facilities-based wireless carriers.
Dish is building its own 5G network, and under the merger conditions T-Mobile committed to provide Dish customers access to its 4G LTE and 3G CDMA services through 2023. However, T-Mobile later announced plans to retire its CDMA network nationwide on January 1, 2022, a move that prompted Dish to ask regulators to require T-Mobile to honor its earlier commitments.
The CPUC’s ruling highlights the seriousness of the discrepancy between T-Mobile’s sworn testimony and subsequent responses, saying the matter warrants further investigation. The commission also emphasized potential harms to Boost prepaid customers, who are often low-income, rural, or transient and therefore particularly vulnerable to service disruptions.
T-Mobile has been ordered to appear via video conference on September 30 before Administrative Law Judge Karl Bemesderfer to explain the apparent inconsistencies. If the commission finds T-Mobile violated its rules, the carrier could face fines of up to $100,000 per offense.
T-Mobile’s leadership has pushed back. In a recent blog post, CEO Mike Sievert accused Dish of “dragging their feet” when it comes to upgrading Boost customers to newer 4G and 5G devices and networks. Sievert characterized the dispute as “a manufactured crisis, orchestrated by DISH,” arguing that Dish should be doing more to provide customers with updated handsets ahead of network changes.
Sievert said T-Mobile has provided Dish with what he called a “detailed action plan” based on prior experience transitioning MetroPCS customers off CDMA, and asserted that Dish has both the roadmap and the expertise to complete its customer upgrades in time. He urged Dish to act so that no customer is left behind during the transition to newer network technologies.
Whether Dish follows T-Mobile’s recommendations remains the company’s choice. Meanwhile, the CPUC will determine whether T-Mobile breached its obligations or made misleading statements under oath during the merger review process.
(Photo by Jametlene Reskp on Unsplash)
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