New T-Mobile extends wholesale data pricing lock-in, won’t on consumer pricing
T-Mobile CEO John Legere was back on Capitol Hill today, pledging in front of a House Judiciary Committee that if his carrier merged with Sprint, MVNOs would be able to lock in their wholesale service pricing or, in his words, “take their rates right now and lock it in for as long as they want.”
One of the main facets of the Department of Justice’s investigation into the merger is the impact on smaller carriers that pay Sprint and T-Mobile to access their networks — the two have historically offered lower rates than AT&T and Verizon. Compounding the competitive weight the two have in the prepaid market is the fact that their subsidiaries — Boost Mobile and Virgin Mobile for the former, Metro by T-Mobile for the latter — have more than half the share of customers.
On another matter, Democratic legislators asked Legere why he would not commit to locking consumer service rates, which he did in February, for more than the three years promised?
“Why not make a price commitment for four or five years?” Rep. Lucy McBath of Georgia asked.
“I will keep the pricing plans everyone has for three years,” Legere answered.
The New York Post aptly notes that the CEO failed to answer the question.
AT&T agreed to keep Time Warner’s existing prices for 7 years as one of the conditions of acquiring the media conglomerate.