T-Mobile pledges to take on ‘the cableopoly’ in Sprint merger bid
T-Mobile has promised it will take on cable firms as part of its latest attempt to woo regulators into authorising the Sprint merger.
In a blog post, T-Mobile CEO John Legere claims the combined firms will be able to solve the lack of broadband connectivity in some rural areas:
“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 government recently stated that rural connectivity needs to improve so Legere appears to be appealing to that cause. Congress has set aside $600 million for its ‘ReConnect Program’ which aims to provide high-speed internet to underserved areas.
A T-Mobile filing to regulators notes the operator, or Sprint, would be unable to deliver a 5G-based home broadband alternative by itself.
The filing goes on to say: "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."
Verizon, the largest carrier in the US, launched a 5G home broadband service in four cities last year.
Adding competition in the 5G fixed wireless space will help to drive innovation and lower prices for consumers. However, the concern remains that reducing wireless competition overall from four to three operators will do the opposite by slowing innovation and increasing prices.
Back in October, Telecoms reported analysts from Wells Fargo increased their odds the merger will be accepted. The analysts put the odds at 70 percent and predicted it will be approved by the end of Q1 2019, which doesn’t leave much longer.
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