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T Mobile, Sprint face new FCC questions on tie-up
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T Mobile, Sprint face new FCC questions on tie-up
At the meeting Wednesday, Federal Communications Commission officials questioned company executives about such issues as 'submitted economic modeling, including how it is conservative in measuring benefits and pricing constraints,' according to a filing with the FCC from a lawyer for the companies. 'They also discussed their pricing commitments as well as the incentives for New T-Mobile to aggressively lower prices,' the letter said. The carriers argued that customers with prepaid phone plans 'would be among the biggest beneficiaries of the transaction.' They suggested that without the merger, T-Mobile and Sprint 'will likely have to raise prices' because they 'will lack the capacity to keep up with growing demand for wireless data.' Congressional Democrats and consumer activists have objected to the $26 billion merger saying it will raise prices for wireless customers.
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