- Cancelling Your Mobile Phone Contract: Exit Fees & Alternatives
- Switch carriers without Early Termination Fees: How to avoid phone ETF fees
- Here’s how it works:
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Cancelling Your Mobile Phone Contract: Exit Fees & Alternatives
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Limited Time Offer! On Friday, the Department of Justice approved the deal , after the Federal Communications Commission had also signaled that the union could go ahead. Ajit Pai, the chairman of the F. The deal faces one last hurdle in the form of a lawsuit by state attorneys general. But what would the T-Mobile and Sprint union mean for you and your wireless service?
When two giant companies get together, critics have said, people typically get stuck with higher prices and service does not evidently improve.
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Supporters of the merger argue that the quality of wireless service will improve for T-Mobile and Sprint customers because they will gain access to a broader network when both are knitted together. If you are a customer of Sprint, watch for the Sprint brand to be absorbed by T-Mobile, which T-Mobile last year signaled would happen.
In other words, Sprint subscribers will become T-Mobile customers, and the executives overseeing T-Mobile will lead the combined company. It will take time for the company to integrate the two wireless networks so that they work well. Behind the scenes, there will be a lot of activity stitching the network technologies and assets of both firms into one. The deal could still hit a snag if the companies fail to overcome the lawsuit brought by several states that have said the combination could harm people by leaving them with higher cellphone bills.
Pricing for wireless services already started inching up this year. Prior to this deal, the company had until March to utilize the airwaves or risk losing its licenses. But as part of the agreement, the company gets an extension to June , when it pledges to have a 5G network of its own that'll cover 70 percent of the US population. Purchasing the divested prepaid businesses, getting additional airwaves and adding the ability to begin offering service on the T-Mobile network while it builds its own would make it easier and more cost-effective for Dish to finally become a wireless competitor.
Though it's unclear what the service will look like beyond utilizing Sprint's prepaid business and retail stores. Dish already has spectrum holdings in the MHz and MHz bands, as well as some midband holdings that'll allow for greater speeds, though it doesn't have the same amount of range. While T-Mobile CEO John Legere has called Dish a "credible competitor," many critics have doubts about Dish's commitment given its past reluctance to build out its network. The FCC issued a press release in September accusing Sprint of defrauding its Lifeline program , which subsidizes phone and broadband service for the poor.
The agency said the wireless carrier claimed subsidies for , Lifeline subscribers who weren't using the service. A spokeswoman from Sprint said the company had no intention of defrauding the government and that the issue was the result of an error after the FCC implemented new rules in She said the company has fixed the issue. But Pai proceeded with the vote on the merger anyway, and acknowledged in the written order that the company is being investigated.
T-Mobile and Sprint promise a combined network that'll deliver better service at lower prices. They argue that their combined scale would help them build out a faster, more efficient network. That's what the Democrats on the FCC have argued. In the pharmaceutical industry, it led to a handful of drug companies raising the prices of lifesaving medications.
Switch carriers without Early Termination Fees: How to avoid phone ETF fees
There's no reason to think this time will be different. The companies have agreed to not raise prices for three years if the deal goes through. But after that, all bets are off. There's a reason why Wall Street likes this deal: Financial analysts think the industry is a little too competitive and that removing one player could ease the pressure.
T-Mobile's Sievert declined to comment on what the companies plan to do with many of the ultracompetitive grandfathered plans that customers have clung to. T-Mobile has generally been good about honoring existing plans within its own service, but it's unclear what it would do with Sprint's plans.
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The companies say it would take about three years to migrate customers over to the T-Mobile network. Sievert says there are about 20 million Sprint phones that are compatible on T-Mobile. One of the critical parts of T-Mobile and Sprint's argument for merging is the move to 5G. The companies say neither can build the 5G network they want without a combination, though that hardly would've been the rhetoric had you asked either side before this deal was announced. The case for 5G leadership is tailor-made for the White House, which killed a proposed takeover of Qualcomm by Singapore-based Broadcom because it threatened the US' position in regard to the next-generation wireless technology.