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Ex-FCC Commissioner Advises T-Mobile, Sprint On $26 Billion Merger (cnet.com)

An anonymous reader quotes a report from CNET: Former FCC Commissioner Mignon Clyburn is working to help T-Mobile and Sprint get their $26 billion merger approved by regulators. Clyburn, a Democrat, confirmed she's working as a paid consultant to the carriers to advise them on their impending merger. The news of her involvement was first reported by Politico on Monday. The companies, whose merger was announced in April last year, need approval from the Federal Communications Commission and the US Department of Justice. "Affordable broadband access is a critical priority particularly for those Americans who are underserved or currently have no viable options at all," she said in an interview with CNET. "I am advising T-Mobile and Sprint as they seek to accelerate the creation of an inclusive nationwide 5G network on how best to build a bridge across the digital divide that currently exists in our country."

Clyburn's involvement in advising the merger is interesting because she was part of the majority on the FCC in 2011 that rejected the merger between AT&T and T-Mobile, concluding that a reduction in the number of national carriers would harm consumers. When the idea of a merger between T-Mobile and Sprint was first floated in 2014, the Democratic-controlled FCC also signaled it wouldn't approve the deal for the same reason. [...] Executives for the companies say they will not raise rates on consumers. In a letter to the FCC on Monday, T-Mobile CEO John Legere made a personal pledge to regulators that the "New T-Mobile" would not raise prices on its service following the merger. Doing so, he said, would erode the relationship with T-Mobile customers.

6 of 36 comments (clear)

  1. Word vomit by Anonymous Coward · · Score: 2, Insightful

    This is a plethora of marketing doublespeak. Here's one gem I've seen before:

    In a letter to the FCC on Monday, T-Mobile CEO John Legere made a personal pledge to regulators that the "New T-Mobile" would not raise prices on its service following the merger

    They won't raise prices following the merger. No. They'll wait 3 whole minutes and then raise prices in a completely unrelated way.

    This entire pledge is devoid of content. How about putting some measurable numbers on that? How about "not raise prices on its services in the 12 months following the merger". And if he doesn't dare to (he won't), ask him why he doesn't.

    1. Re:Word vomit by bobbied · · Score: 2

      Will prices go up? As sure as the sun shines during the day....

      Don't forget though that building out a 5G network to replace Sprint and T-Mobile's existing is what this merger thing is really about. Both companies own existing spectrum space, tower space and a subscriber base that will make the transition to 5G over time. Having a bigger network is an advantage when dealing with equipment vendors, having a larger subscriber base allows these costs to be passed on at a lower cost per subscriber, and having spectrum space that overlaps in may places makes the logistics easier.

      But you are right, it's going to cost subscribers more and cost some their jobs if the merger happens... But the question really should be if this price increase will be more that it would have been had the merger not happened? On that question, the answer is less clear.

      --
      "File to fit, pound to insert, paint to match" - Aircraft Maintenance 101
  2. Well DUH! by p51d007 · · Score: 3, Funny

    "Clyburn's involvement in advising the merger is interesting because she was part of the majority on the FCC in 2011 that rejected the merger between AT&T and T-Mobile, concluding that a reduction in the number of national carriers would harm consumers." Well, she wasn't being paid a buttload of MONEY then!

  3. Well back it up then.. by Anonymous Coward · · Score: 2, Insightful

    "Executives for the companies say they will not raise rates on consumers. In a letter to the FCC on Monday, T-Mobile CEO John Legere made a personal pledge to regulators that the "New T-Mobile" would not raise prices on its service following the merger. Doing so, he said, would erode the relationship with T-Mobile customers."

    Will they put it in legal writing, that if they do they would lose their bonuses, from that point on for the entire time they are in that position and no exit bonuses.

    Do that then they can be believed, until that point its just idle words.

    (.)-(.)

  4. Wow! by kenh · · Score: 2

    A former regulator that sold-out once they left office and entered the private sector - now that IS news!

    Seriously?

    --
    Ken
    1. Re:Wow! by Nidi62 · · Score: 3, Interesting

      So what? I mean, what do you expect her to do for the rest of her carrier? Dig ditches? This is an area she knows, she should apply her knowledge.

      So teach, speak, become a TV talking head, use connections to help towns set up municipal ISPs, etc. You know, jobs/activities that don't involve you taking money from businesses that you used to regulate.

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil