Mobile promises the Sprint merger won't drive up prices… for now

1-million-project

The self-identified "Un-carrier" pre-announced its subscriber numbers for the fourth quarter of 2018 last month, disclosing that it had added a net 1.4 million new postpaid subscriptions, its best quarter ever, including 1 million new phones. This foundation is Sprint's effort to help one million high school students to get connected by giving them mobile devices like smartphones, mobile hotspots, and tablets along with free Sprint mobile service for up to four years in high school. "I want to reiterate, unequivocally, that New T-Mobile rates are NOT going to go up".

While prices would effectively stay the same, there could be changes in rates based on taxes, fees, or third-party surcharges which T-Mobile said in a separate letter to the FCC was "not within the control of New T-Mobile".

T-Mobile CEO John Legere posted an open letter to the FCC discussing the proposed T-Mobile-Sprint merger.

The plot twist. Early Thursday morning, T-Mobile reported 75 cents in earnings per share in the fourth quarter versus the Wall Street consensus estimate of 69 cents per share-up 23% from the same period past year. We believe this merger makes consumers better off, and we're willing to put our money where our mouth is.

With little news to share on the earnings front, the prospects for T-Mobile's merger with Sprint was the predominant focal point during the call. "Our costs at New T-Mobile is going to go down dramatically when it comes to what it costs to produce a gigabyte of data".

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The letter also implies that following the merger, consumers will get more bang for their buck. The third and fourth largest wireless providers in the US say that joining forces would allow them to roll out the next generation of wireless networks more quickly and compete better with the top players AT&T and Verizon.

Customers of T-Mobile (TMUS) and Sprint (S) may catch a break if the Federal Communications Commission approves the deal to allow the two wireless carriers to merge.

As T-Mobile and Sprint look for approval to close their merger deal, the companies have proposed a new deal to hold prices for customers for three years.

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 now offers, which includes all taxes and fees in the price.

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