John Legere, CEO of T-Mobile
Today marked another important day in Washington DC for the New T-Mobile. I had another opportunity to answer questions and share details with members of Congress on the House Judiciary Committee about our merger, alongside Marcelo Claure. As I wrap up the day, I want to share some of the most important things that we covered.
I want to start by acknowledging the honorable Committee members and thanking them for taking the time to get more informed and educated about the benefits of our merger. These are topics that matter. This is an important discussion, so I appreciate the fact that we were invited to present the details about how this merger will be good for consumers, drive more competition in wireless and in broadband, and deliver on America’s 5G needs.
Here’s what I think matters most.
Building A Nationwide 5G
Network for Everyone
The New T-Mobile will deliver a nationwide 5G network that will blanket the US and provide better coverage for consumers everywhere – including rural America – than they have today. The New T-Mobile will be able to combine the spectrum and network assets of T-Mobile and Sprint to create an unparalleled broad and deep nationwide 5G network with faster speeds and improved access that will give the US the best opportunity to win the race to 5G. Today’s status quo is not good enough for our country — and it’s definitely not good enough for the underserved parts of the country. Our new 5G network will cover 96% of rural Americans, offering them better service and more choices. The massive cost savings from things like tower leases (not jobs!) and the combination of assets from this merger will allow us to bring better wireless AND new alternatives for in-home broadband to consumers across the country.
Creating Jobs from Day One
Despite what opponents who don’t know or understand our business plan might say, this merger will be jobs positive from day one. The New T-Mobile will invest nearly $40B over the next three years in our 5G network and the business. That massive investment will drive job growth. We will deliver an additional 11,000 US jobs by 2024 by adding 5 new US Customer Experience Centers, at least 600 new retail stores to serve small towns and rural America, building out our broad and deep nationwide 5G network and expanding into new businesses. I am proud of our record of job creation at T-Mobile and excited about what we’ll do at the New T-Mobile… and I appreciated the opportunity to set the record straight today with the facts. And, even more importantly – as I said today – every Sprint and T-Mobile retail employee will have a job offer at the New T-Mobile. This is going to be a growing company!
Lower Prices for Consumers: Prices will go down!
Last, but not least, I want to touch on pricing. Today I made clear to members of Congress that consumer prices will go down as a result of this merger and consumers will get more for less. I’ve said it before and I said it again today. There has been plenty of debate about how a merger of any sort can really deliver lower prices and improved quality. Well this is not your typical merger. I detailed how our massive increase in network capacity will allow us to deliver more value, new services and lower prices to consumers. Consumer usage and data consumption is going to increase – prices won’t. It’s a pledge we put in writing to regulators reviewing our merger – not because we needed to, but because I wanted to be very clear in our commitment. The New T-Mobile’s 5G + LTE network will deliver 8 times the capacity in 2024 compared to standalone T-Mobile plus Sprint today. We will have a ton of excess network capacity (like empty seats!) that I need to fill. Just as empty airline seats are bad for business, an empty wireless network is bad business and bad economics – reducing prices to fill that capacity is good business and sound economics. With this new network – we will continue to go after AT&T and Verizon. We will compete, and we will deliver more value and better pricing to consumers everywhere.
At the end of the day I leave you with this. I have fought for consumers for nearly 7 years here at T-Mobile and this merger to become the New T-Mobile is no different. We have spent a lot of time meeting with lawmakers, regulators and their staffs in Washington DC and around the country to share our plans to deliver a New T-Mobile that is good for consumers and the marketplace. I welcomed today’s discussion because I believe in this merger. I believe in the New T-Mobile, and I know that it is a win-win for consumers in America.