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John Legere promises 3 years of 'same or better rate plans' after Sprint merger
- T-Mobile CEO John Legere posted an open letter to the FCC discussing the proposed T-Mobile-Sprint merger.
- In the letter, Legere promises not to raise rates above their current standing for the next three years, should the merger go through.
- Legere also promises to remain true to customers and its “Uncarrier” ideology.
In the letter, Legere calls out critics of the merger whom he says are “largely employed by Big Telco and Big Cable.” He says that these critics erroneously cling to the assumption that the T-Mobile-Sprint merger will cause consumers to pay more for wireless service and/or get fewer features with their plans.
In response to this, Legere makes a very clear promise that that will not happen, at least for a certain amount of time:
To remove any remaining doubt or concerns about New T-Mobile’s prices while we are combining our networks over the next three years, T-Mobile today is submitting to the Commission a commitment that I stand behind – a commitment that New T-Mobile will make available the same or better rate plans for our services as those offered today by T-Mobile or Sprint.
Considering this letter was posted yesterday, February 4, 2019, that would mean entry-level prices would not exceed the base-level $70 unlimited plan T-Mobile currently offers, which includes all taxes and fees in the price. Ostensibly, customers signing up with the new T-Mobile if and when the merger goes through would pay no more than this until at least 2022.
However, this promise likely wouldn’t cover new technologies, such as the 5G service that’s on the horizon. Since that service isn’t up-and-running yet, it could still be quite expensive and Legere wouldn’t have broken this promise.
Depending on how much you believe what Legere says, it does seem that he is passionate about keeping his loyal customers happy:
We are the Un-carrier. If we broke faith by raising rates and cutting back benefits, we would lose our loyal customers and destroy the future of our brand. I want to assure you that we would never do this. My management team and I can make this personal commitment because we believe in delivering on our promises, and we know if we do not, we will lose credibility and the trust of our customers.
The proposed T-Mobile-Sprint merger has already received approval from the Treasury Department and is awaiting approval from the Department of Justice and the FCC.