Legere seizes on Verizon 5G rate plan to promote Sprint/T-Mobile merger, price lock
Verizon recently announced that it would start selling the 5G Moto Mod accessory that would make the wireless carrier’s new network accessible for just one legacy phone, the Moto Z3. It also slid in a mention of what customers should expect to pay to access the network: $10 per month on top of what they’re already paying.
T-Mobile CEO John Legere launched into a promotional fury in a blog post, having just been grilled for hours by a congressional committee on how its proposed merger with Sprint would impact the industry.
In pointing out Verizon’s quiet announcement and AT&T’s recent price hikes when it comes to its DIRECTV customers, Legere reiterated the New T-Mobile’s promise to keep its existing service plans at current or lower prices for the next 3 years while providing better service.
“I’ve said it before and I’ll say it again — with the New T-Mobile, prices are GOING DOWN,” Legere wrote. “Our merger will help ensure that American consumers will get more and pay less than they do now.”
The combined company would leverage $40 billion in 5G investment over the next 5 years to drive up network capacity sevenfold over what Sprint and T-Mobile have right now. It’s hoped that subscriber volume would go up in the same way with the 3-year price lock — 3 years being about the time the network is able to serve a large proportion of potential customers.
There are other concerns to be considered as the federal government continues its review of the merger including its impacts on competition. While T-Mobile said it has extended indefinite price locks to smaller carriers buying network access on a wholesale basis, those investigations have yet to be resolved.