T-Mobile has asked for modifications to several conditions tied to the approval of its merger with Sprint.
The company has submitted a request to the California Public Utilities Commission (CPUC) seeking relief from three specific obligations that were part of the merger approval.
A central argument T-Mobile used to justify the merger was that combining the two companies would lead to job growth. Former CEO John Legere previously stated that a merged T-Mobile and Sprint would yield roughly 11,000 additional jobs by 2024 compared with the two carriers operating separately.
Among the commitments tied to approvals, T-Mobile agreed to create 1,000 full-time jobs in California. The company now asks that this particular requirement be removed, citing the long-term impacts of the COVID-19 pandemic on workforce planning and business conditions.
Although telecom providers have been less directly affected than some other sectors—connectivity demand has in many cases increased—the pandemic has nevertheless introduced uncertainty that can complicate large-scale hiring commitments.
The Communications Workers of America (CWA) has criticized T-Mobile’s petition, arguing the carrier is reneging on its job-creation promises. The union highlighted recent actions such as the elimination of roughly 400 positions that had been part of Sprint’s workforce.
T-Mobile acknowledged those layoffs in a company statement while also saying it plans to hire 5,000 new employees over the next year as it integrates operations and pursues growth.
T-Mobile’s second requested adjustment concerns 5G coverage and average speed commitments. The company contends that the current targets are inconsistent and, as written, infeasible to meet.
For example, one pledge calls for average 5G speeds to increase from 100 Mbps in 2023 to 300 Mbps in 2024. T-Mobile argues that independent testing already scheduled will cover required verification and that adding a third independent test would be unnecessarily burdensome.
The CPUC will review T-Mobile’s filing and decide whether to approve any of the requested relaxations. Given the regulatory emphasis on protecting competitive and consumer interests, full approval of all changes is uncertain.
(Photo by Matt Artz on Unsplash)
Interested in hearing industry leaders discuss topics like these? Attend co-located events such as the 5G Expo, IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, and Cyber Security & Cloud Expo at upcoming venues in Silicon Valley, London, and Amsterdam.