Boost Founder Wants to See Boost/MetroPCS Divested If Sprint/T-Mobile Merger Goes Through
At least one person thinks Sprint and T-Mobile should be required to divest their respective prepaid businesses if they are allowed to merge. Peter Adderton, founder and former CEO of Boost Mobile, firmly believes the market will become less competitive — particularly in the prepaid space — if Sprint and T-Mobile are allowed to merge without any divestitures. “If this merger is approved without the divesture of Boost Mobile and/or MetroPCS, the new combined entity will hold a 40% market share in the prepaid segment — which I would argue has the effect of being a monopoly or extreme dominance in the category,” said Adderton in a press release. “This level of market domination virtually always leads to rising prices, more onerous terms and conditions and lower service quality, and young and credit-challenged prepaid subscribers simply can’t afford that.” Sprint owns and operates Boost Mobile and Virgin Mobile USA, while T-Mobile owns and operates MetroPCS. Sprint and T-Mobile “will have significant incentive to restrict network access to competing MVNOs. If that happens, MVNOs, who already run on extremely tight margins, have little or no opportunity to make a profit, and we can expect many of them to close their doors,” argued Adderton. Boost, Virgin, and MetroPCS do not own or operate their own networks, so it’s unclear how Adderton believes such a divestiture could work. Each would have to be given spectrum and other assets to launch functioning service around the U.S. Though Adderton said “I would love to take control of it, that’s not the driver here.” Instead, he insists his goal is to ensure the wireless market remains competitive. Adderton plans to take his case to Congress as well as the public. Sprint and T-Mobile believe their proposed merger will pass regulatory scrutiny, but the government has yet to make its case.
Feb 11, 2020
A multi-state anti-trust lawsuit to stop the merger of Sprint and T-Mobile has failed. New York Attorney General Letitia James issued a statement saying "There is no doubt that reducing the mobile market from four to three will be bad for consumers, bad for workers, and bad for innovation, which is why the states stepped up and led this lawsuit.
Jan 7, 2020
Sprint is shutting down its Virgin Mobile prepaid brand. Starting the week of February 2nd, Sprint will move current Virgin Mobile customers to Sprint's other prepaid brand, Boost Mobile.
Nov 7, 2019
T-Mobile today announced plans to offer three new programs offering 5G service for free to certain groups, or cheaply for everyone else. The company is promising to launch the programs when and if it is allowed to merge with Sprint.
Nov 26, 2019
MediaTek has revealed that its first SoC with integrated 5G modem and high-end processor will be called the Dimensity 1000. The company revealed the first set of details on the chip in May.
Apr 29, 2018
T-Mobile and Sprint today announced plans to merge in an all-stock deal that will create a "New T-Mobile" worth $146 billion. The new company's combined radio spectrum assets will allow it to accelerate deployment of 5G technology.