Today, Americans for Tax Reform President, Grover Norquist, sent a letter to the House Communications Subcommittee in support of the T-Mobile/Sprint Merger. The proposed merger would give consumers a third viable 5G provider in the market while providing the new T-Mobile with the tools it needs to compete with incumbents in the market. The merger should be viewed as pro-competitive and approved quickly to help get 5G to market.
Norquist explains that: “T-Mobile and Sprint’s histories show that the companies innovate without government instruction. They have lowered prices and offered innovative services. T- Mobile was the first company to get rid of phone contracts and contract penalties – without the government telling them to do it.”
To read Norquist’s letter, click here
February 13, 2019
The Honorable Mike Doyle
United States House of Representatives
306 Cannon House Office Building
Washington, DC 20515
The Honorable Bob Latta
United States House of Representatives
2467 Rayburn House Office Building
Washington, DC 20515
Dear Representatives Doyle, Latta, and Members of the House Energy & Commerce Committee:
I write in opposition to any government intervention in the merger between T-Mobile US, Inc. and Sprint Corporation. Companies should be able to merge or split without government permission. Doom and gloom rhetoric should not stand in the way of innovation and job creation.
T-Mobile and Sprint’s histories show that the companies innovate without government instruction. They have lowered prices and offered innovative services. T- Mobile was the first company to get rid of phone contracts and contract penalties – without the government telling them to do it.
Because America deployed 4th generation wireless technology first, American innovation exploded across the globe. Jobs around App creation were unforeseen and allow more Americans to work for themselves. Video or photo blogging is a career choice because of 4G and the devices that run on it. 5G will create new industries and employment opportunities because of enhanced connectivity.
Having additional robust, cheaper and widely available 5G offerings will also pressure today’s wireline providers to improve service, and to invest more heavily in building their own wireless networks to offer customers the mobility they increasingly demand. This will make the wireless market even more dynamic than it would have been without the merger.
The merger is poised to create thousands of new jobs. To sustain the combined infrastructure and expansion, the company needs employees. Some speculate that combining the two companies will result in a loss of 28,000 jobs and claims Sprint’s Kansas City headquarters will be eliminated. Sprint alone has roughly 30,000 employees. If the New T- Mobile eliminated 28,000 jobs, the it would not be able to sustain the combined infrastructure and expansion that the merger would require. Instead of closing the doors on the current Sprint headquarters, the New T-Mobile will expand it with 5,600 new customer care jobs.
While I do not believe any merger or split needs to be blessed by government, the action plan set out by T-Mobile and Sprint, stating how jobs will be created and competition increased, should give regulators more certainty that the New T-Mobile will benefit Americans.
If you should have any questions or comments, please contact me or Katie McAuliffe by phone, 202-785-0266, or email, [email protected]
Onward,
Grover Norquist