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Money News

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

November 12, 2019

2 min read

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

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By Claire Grant
Claire is a content writer for Stash.

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