A couple of weeks ago, the Federal Communications Commission (FCC) announced that they would be opening their doors to comments and formal petitions from opponents of the $ 26 billion merger between Sprint and T-Mobile. At the same time, the government agency was also open to hearing from those who were in favor of the merger between these two companies. Not one to pass up an opportunity, David Glickman, CEO of Mint Mobile and Ultra Mobile, penned a letter explaining why he supports this merger.
According to Glickman, people have been asking the wrong question with regard to the proposed merger. The CEO recommends looking at things from a different perspective, one that shows how groundbreaking the merger between these two wireless carriers could be. Instead of focusing on the “right number” of wireless carriers available for the U.S. consumer, the CEO believes we should be asking “whether the merger will finally create three strong, healthy network providers investing tens of billions of dollars each into 5G for all of America to enjoy.”
The Mint Mobile CEO explained that the merger between T-Mobile and Sprint will result in many market innovations. This will benefit independent resellers, as they will be better able to compete on price. As it stands right now, Mint Mobile’s affordably priced plans, starting at $ 15 per month, utilize spare wireless capacity to provide high-quality wireless broadband service to its customers.
Glickman also believes that the merger will be equally advantageous to regulators. On their own, T-Mobile and Sprint are unable to compete in the market. And if they were unable to merge, their separate 5G networks would not be as broad or deep as otherwise possible. Individually, these two companies could spend up to $ 10 billion each in order to build a moderately better network over the next five years.
Together, however, these companies will be able to create a nearly ubiquitous network that’s sure to fill in the gaps that existing 4G networks have. In return, the average American consumer will be able to enjoy speeds that are, at minimum, twice as fast as today, yet still at a fair price. The projected investment is nearly $ 40 billion over the next three years. This merger is also expected to create thousands of jobs in the U.S. alone.
Now is the best time for Sprint and T-Mobile to join forces to make 5G technology available to the average consumer. With the merger, the new company can create one powerful network that would force Verizon and AT&T to follow suit. This will also give big cable companies tougher competition, forcing all involved to invest heavily on making the average landline and cable internet experience a lot better than it is today.
Currently, almost half of all American homes only have one or fewer providers capable of delivering 25 Mbps broadband speed. But the new T-Mobile will be able to provide high-speed wireless broadband in excess of 100 Mbps to almost two-thirds of the population by 2021. By 2024, this could be available to almost 90 percent of the U.S. population.
But where does this leave independent prepaid resellers? With so much wireless capacity available, companies like Mint Mobile and Ultra Mobile will be able to offer competitive rates to their customers. This could also toughen up the market for cable providers, which have long been in need of improvement.
Source: Mint Mobile