States Should Support the T-Mobile/Sprint Merger

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Posted by Bethany Patterson, Katherine Ryerson on Thursday, August 8th, 2019, 2:55 PM PERMALINK

The group of state attorneys general who filed a lawsuit to block the T-Mobile/Sprint merger in June continue their misguided efforts despite the Department of Justice’s approval of the transaction in July. 

A combined T-Mobile/Sprint would be highly beneficial for Americans, who would benefit from the greater connectivity, faster internet and economic growth the merger would bring.

Yesterday, Americans for Tax Reform President Grover Norquist sent a letter in support of the merger to Texas Attorney General Ken Paxton, the only Republican attorney general who has joined the lawsuit.

He also sent letters to the attorney generals of Louisiana, West Virginia, Florida and Tennessee — all states that would benefit greatly from the T-Mobile/Sprint merger.

The merger will be instrumental in helping close the digital divide. T-Mobile and Sprint have committed to build a 5G network that will cover 97 percent of Americans — including 85 percent of rural residents — within three years. The companies have also pledged to create an in-home broadband product that would provide internet to underserved areas across the country.

As of now, many Americans do not have adequate access to the Internet, especially in rural areas. Only 62.6 percent of West Virginians and 63.3 percent of Louisanans in rural areas have access to fixed 25 Mbps/3 MBps and mobile LTE 5 MBps/1Mbps, according to the FCC.

Over 2.3 million Floridians and 1.8 million Texans have limited access to high speed internet. Without reliable broadband access, it is extremely difficult to pay bills, apply for jobs, and run successful small businesses.

This problem also greatly impacts children who live in rural areas. More than 25 percent of Tennessee’s middle and high school students do not have home internet access. They cannot complete online school assignments like homework or other activities at home without it. The commitments that T-Mobile and Sprint have made would change these Americans’ lives. 

The merger will also provide more competition in the wireless industry, not less. The New T-Mobile will be a larger third competitor to the two top wireless carriers, which will drive down prices and lead to better service for all Americans. 

In addition, it will create 5,600 new customer service jobs and employ 7,500 more people than Sprint and T-Mobile do separately — not to mention the 3 million new jobs their new 5G network could create. 

In other words, this has the potential to transform the lives of millions across the country. 

The merger between Sprint and T-Mobile would boost competition, create new jobs, benefit consumers, and most importantly, connect underserved Americans to the digital world. Our political leaders should embrace this future of greater connectivity and support the merger. 

Photo Credit: Mike Mozart

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