T-Mobile has vowed to challenge cable companies as part of its latest effort to persuade regulators to approve the Sprint merger.
In a blog post, T-Mobile CEO John Legere said the merged company could help address the shortage of broadband access in some rural communities:
“With the New T-Mobile and our unique 5G capabilities, we’ll be able to offer a fast and reliable alternative for in-home broadband – yes, a real alternative option! And we aren’t just going to offer a new alternative. No. We’re the Un-Carrier! – and if there’s ever been an industry more in need of disruption than wireless, it’s the Cableopoly. So we are going to change it the same way we changed wireless! Aggressive prices, rapid innovation, listening to customers and fixing what’s broken. That’s just what we do – we are not going to simply do more of what the other guys do!”
The federal government has emphasised the need to improve rural connectivity, and Legere’s comments clearly appeal to that priority. Congress has allocated $600 million to the ReConnect Program, which is intended to expand high-speed internet access in underserved areas.
In a regulatory filing, T-Mobile acknowledged that neither it nor Sprint alone could deliver the type of 5G-based fixed wireless home broadband service the merged company envisions.
The filing notes: “Sprint has no current plans to provide in-home fixed wireless broadband service as contemplated for the New T-Mobile. T-Mobile, as a standalone, has limited plans at best.”
Last year Verizon, the largest US carrier, launched a 5G home broadband service in four cities, demonstrating one model for delivering fixed wireless access to households.
Introducing more competition in the 5G fixed wireless market could spur innovation and lower prices for consumers. However, critics warn that reducing the number of national wireless providers from four to three could have the opposite effect overall, potentially slowing innovation and driving prices higher.
In October, analysts at Wells Fargo told TelecomsTechNews they had raised the likelihood that the merger would be approved. Those analysts estimated a roughly 70 percent chance of acceptance and predicted approval by the end of Q1 2019.
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