Get started
Get the app

Join millions of investors on Stash

Investing, simplified

Start today with as little as $5
Get the app
Money News

What $15 Plans Have to do with T-Mobile’s Sprint Merger

February 13, 2020

2 min read

Update: On February 11, 2020, a federal judge ruled in favor of the merger between T-Mobile and Sprint in a lawsuit brought by 13 state attorneys general. The states could still appeal the decision, according to reports. While the merger is no longer on hold, it also still needs to be approved by California’s Public Utilities Commission.

Telecom carrier T-Mobile announced last week that it will offer consumers a $15-dollar monthly data plan if its $27 billion merger  with Sprint is approved.

The reduced-rate plan is reportedly being offered to ease the concerns of regulators and other industry watchdogs who fear that the merger could drive up plan prices for all wireless customers.

If and when the merger is finalized, T-Mobile executives have reportedly said the newly combined company would offer a plan that provides users with unlimited talk, text, and 2GB of data, at approximately half the cost of its cheapest plan currently. Additionally, T-Mobile said in a press release it will give emergency workers and first responders 10 years of free 5G service, and that it will provide 10 million homes in the U.S. and Puerto Rico with free wireless service and subsidized devices.

These initiatives could be designed to convince consumers and states attorneys general that a merger between T-Mobile and Sprint won’t mean that the company will only seek out the most lucrative customers who can afford the most expensive plans, according to reports.

While the merger was approved by the Federal Communications Commission in October 2019 and by the Department of Justice in July 2019 the deal still faces antitrust lawsuits from 12 states including New York and California. These suits, which object to the merger on the grounds that it could create a monopoly that will increase consumer prices, are set to begin in early December.

T-Mobile enters the price wars

By offering a $15 plan, T-Mobile has also entered a competitive market, with other providers offering cheap plans. AT&T’s Cricket offers a prepaid 2GB plan costs $30 per month, for example, and Sprint’s Boost costs  $35 per month for 3GB of data. (AT&T merged with cable and entertainment company Time Warner earlier in 2019.)

Details about the merger

Welcome to your new financial home.

Start today with any dollar amount.

Get the App

Believe in an industry?

You can invest in it and many more!

See options on Stash!

Believe in an industry?

You can invest in it and many more!

See options on Stash!

By Claire Grant
Claire is a content writer for Stash.

Investment Profile

Legal Cannabis Industry

Get all the details on investing in marijuana and the cannabis industry legally.

Learn more
Explore more articlesChoose a topic to learn more about
social media love and money pop culture Technology budgeting

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stash assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. There is no guarantee that any strategies discussed will be effective.

Furthermore, the information presented does not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance. There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. Before investing, please carefully consider your willingness to take on risk and your financial ability to afford investment losses when deciding how much individual security exposure to have in your investment portfolio.

Past performance does not guarantee future results. There is a potential for loss as well as gain in investing. Stash does not represent in any manner that the circumstances described herein will result in any particular outcome. While the data and analysis Stash uses from third party sources is believed to be reliable, Stash does not guarantee the accuracy of such information. Nothing in this article should be considered as a solicitation or offer, or recommendation, to buy or sell any particular security or investment product or to engage in any investment strategy. No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. Stash does not provide personalized financial planning to investors, such as estate, tax, or retirement planning. Investment advisory services are only provided to investors who become Stash Clients pursuant to a written Advisory Agreement. For more information please visit www.stashinvest.com/disclosures.