Sprint tells of business struggles in first day of T-Mobile merger trial

NEW YORK - Executives from Sprint Corp testified on Monday that the U.S. wireless carrier has struggled to improve its network, hindering its growth and underscoring the need to merge with larger rival T-Mobile US Inc.The states seek to prove in Manhattan federal court that the deal between the No. 3 and No. 4 wireless carriers would raise prices, particularly for users on prepaid plans.

In an effort to show how competition lowered prices, the states presented evidence that when Sprint introduced an aggressive promotion in 2016 to offer phone plans comparable to those of Verizon, AT&T and T-Mobile, T-Mobile’s MetroPCS prepaid brand immediately lowered prices on its plans. In WhatsApp messages from 2017 between Sole and Marcelo Claure, who was then CEO of Sprint, Sole suggested a merger with T-Mobile could raise Sprint’s average revenue per user by $5.

The deal had been contemplated in 2014 during the Obama administration, but the Justice Department and Federal Communications Commission urged the companies to drop it, which they did.The Trump administration signed off on it after the companies agreed to sell Sprint’s prepaid businesses, popular with people with poor credit, to satellite television company Dish Network Corp.

Monopoly ?

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