Prepare For An Epic Bullshit Sales Pitch For The Competition-Killing Sprint, T-Mobile Merger | Techdirt
Description: For much of this year, Sprint and its Japanese owner Softbank have been buttering up the Trump administration in the hopes it will sign off on a merger between Sprint and T-Mobile. Sprint tried the same merger back in 2014, but found the attempt...

Members Of Trump's Admin Team Using... >>
<< UK Man Gets 12-Month Sentence For Refusing To...
<< Verizon Hangs Up On Tens Of Thousands Of...

Predictions

by Karl Bode

Tue, Sep 26th 2017 6:23am

Filed Under:
competition, consolidation, merger, wireless

Companies:
sprint, t-mobile

Permalink.
Short link.

# Prepare For An Epic Bullshit Sales Pitch For The Competition-Killing Sprint, T-Mobile Merger

### from the merge-ALL-the-things! dept

For much of this year, Sprint and its Japanese owner Softbank have been buttering up the Trump administration in the hopes it will sign off on a merger between Sprint and T-Mobile. Sprint tried the same merger back in 2014, but found the attempt wisely blocked by regulators because it would have killed one of just four major wireless competitors in the space. Said buttering up has involved letting Trump falsely claim responsibility for murky Softbank job creation claims that were originally planned years ago, have nothing to do with the merger, and even less to do with Donald Trump.

Obviously the wireless market is enjoying a bit of a resurgence lately courtesy of T-Mobile, which has been giving bigger competitors fits by simply listening to what consumers want (fewer hidden bullshit fees, no contracts, cheaper international roaming) and providing it. In turn, wireless consumers have seen some notable improvements in the last year or two, including AT&T and Verizon being forced to bring back unlimited data plans they had previously tried to claim consumers didn't want. It's a resurgence that wouldn't have happened if regulators hadn't blocked AT&T's own attempted takeover over T-Mobile back in 2011 (something telecom giants and the "who needs government oversight?" sect would have you forget).

Yet here we are once again. With the Trump administration now acting as little more than a rubber stamp for telecom sector incumbents (see the killing of privacy protections, net neutrality rules, attempts to bring competition to the cable box, efforts to bring broadband to the poor, etc.) most analysts believe the Trump DOJ and FCC will happily approve this deal, the obvious competitive repercussions be damned. To help make sure, Sprint this month hired a lobbyist connected to Trump in the hopes of further greasing the skids for deal approval.

As a result, the proposed superunion between Sprint and T-Mobile appears to be quickly gaining steam, with a deal to be formally announced sometime in October:

> "The transaction would significantly consolidate the U.S. telecommunications market and represent the first transformative U.S. merger with significant antitrust risk to be agreed since the inauguration of U.S. President Donald Trump in January. The progress toward a deal also indicates that T-Mobile and Sprint believe that the U.S. antitrust enforcement environment has become more favorable since the companies abandoned their previous effort to combine in 2014 amid regulatory concerns.

With the deal set to make headlines, you can expect an absolute torrent of pay-to-play editorials to start popping up in newspapers and websites nationwide, all of them trying to insist this deal will be of indisputable benefit to consumers. A wide variety of groups take telecom cash to repeat whatever they're told, whether it's rural Texas school associations, the U.S. Cattlemen's Association or co-opted minority groups, and you can be damn sure the dollar-per-hollar voices paid to support shitty policy will be out in force making a littany of false claims about the supposed perks of this latest, attempted union.

But as John Oliver just got done exploring, history isn't murky on this particular point: the elimination of a major competitor by merger undermines competition in a sector that's already well-known for a lack of it. Removing one of four competitors in the space will drive up prices, and could result in the elimination of unlimited data plans that only just re-appeared on the market. Apparently, this isn't a historical reality many T-Mobile customers are particularly tuned into, if this informal poll is any indication:

> T-Mobile customers: Are you okay with @TMobile merging with @Sprint if @JohnLegere stays CEO, and T-Mobile absorbs the Sprint brand?

> — Logan Abbott (@loganabbott) September 22, 2017

Many of these looming pay-to-play editorials selling this turd of a deal will try to argue that Sprint needs the deal to remain viable, but under SoftBank Sprint has notably improved its balance sheet and network, and there's a litany of possible suitors that could help Sprint manage its debt load (Comcast, Charter, Dish) that don't involve killing one of four major wireless competitors. Others will try to claim immeasurable job creation from the merger, when history repeatedly indicates that these kinds of mergers are indisputable job killers -- thanks to the elimination of countless redundancies at the acquired company.

The real challenge in selling this merger will fall in the lap of John Legere, the admittedly amusing T-Mobile CEO that has built a reputation for saying fuck a lot on Twitter and for being a consumer ally (even if this dedication has proven skin deep on subjects like net neutrality and the EFF). Leaks suggest Legere will stay on at the freshly-merged company, but may face headwinds in convincing some of the more alert T-Mobile customers that dramatically reducing market competition will somehow, magically, be immeasurably good for them.

31 Comments | Leave a Comment
If you liked this post, you may also be interested in...

- Verizon Hangs Up On Tens Of Thousands Of 'Unlimited' Wireless Customers For Using Too Much Data
- HP Brings Back Obnoxious DRM That Cripples Competing Printer Cartridges
- The Google Fiber Honeymoon Period Appears To Be Over
- Docs Show Police Also Sought (And Obtained) Phone Records For Police Shooting Victim's Girlfriend
- Comcast, Charter May Soon Get Even Larger With Joint Acquisition Of Sprint

## Reader Comments

Subscribe: RSS

View by: Time | Thread

- aerinai (profile), 26 Sep 2017 @ 6:02am

  ### T-Mobile is starting to add 'bloat' even before the merger.

  So I noticed that T-Mobile was offering Netflix for 'free'. I use T-Mobile. I use Netflix. If I could save myself $10, sure, why not sign up for the 'free' thing. It was the same plan I had... until I checked their website. I noticed their T-Mobile One plan, which I am on, is now $20 more expensive than what I am paying (for the exact same plan signed up for 6 months ago)... but it includes Netflix now...
  I'm not a math whiz, but I'm pretty sure a $20 price hike and giving me a $10 video streaming option isn't free...
  Oh well... we had a good run while it lasted!

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 6:46am

  ### Re: T-Mobile is starting to add 'bloat' even before the merger.

  Data on T-Mobile One plans went up $5 in July. "End of a promotional period" was the claim, though the cynic in me says "started nearing a deal with Netflix" is more accurate.
  https://www.theverge.com/2017/7/6/15929574/tmobile-one-plus-unlimited-data-hd-video-tetheri ng-price

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 6:37am

  ### don't wory

  regulation is gonna save us!
  right?

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 6:43am

  ### Re: don't wory

  Nobody's actually as stupid as you're portraying yourself right now.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:22am

  ### Re: Re: don't wory

  you are right, they are even dumber... like you!

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 9:30am

  ### Re: Re: Re: don't wory

  Wow that's the best you got? All that lead paint must be taking a toll.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 9:33am

  ### Re: Re: Re: don't wory

  "I know you are but what am I." Fucking incredible.

  [ reply to this | link to this | view in chronology ]

- Ninja (profile), 26 Sep 2017 @ 7:40am

  ### Re: don't wory

  Yes, if the merger is blocked under current regulations that deal with monopoly and the FCC doesn't roll back what has been put in place it will help a lot.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:21am

  ### Re: Re: don't wory

  Hence my point. The FTC has an epic track record for failure here. Current regulation is not even being enforced and yet there are calls for more. The fact along that these companies are even attempting to move forward with this merger means they have been given a thumbs up behind closed doors in chats with regulators.
  We have been doing this for so long, I don't think any of the rules, new or old are being followed. they just read a couple of laws and then twist them to mean what they need them to mean as needed for the situation.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:04am

  ### Re: don't wory

  deregulation is gonna save us!
  right?

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:14am

  ### Re: Re: don't wory

  Is that the only direction you are able to think in?
  If I am not raving in favor of regulation then I am raving for its complete dismantling? This is why the conversation always goes wrong, because of blithering idiots like you. There is far more to this conversation other than sucking regulation dick you dumb-ass.

  [ reply to this | link to this | view in chronology ]

- Stephen T. Stone (profile), 26 Sep 2017 @ 9:08am

  ### Re: Re: Re: don't wory

  > Is that the only direction you are able to think in?

  Do not fault him for following the example you set.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 9:18am

  ### Re: Re: Re: Re: don't wory

  But you can fault me for following the example TD and it's usual patrons set?
  Ah yes, hypocrisy is such a sweet fruit. Are you sure your shit does not stink? I bet you go to the bathrooms and flush it down like everyone else.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 9:36am

  ### Re: Re: Re: Re: Re: don't wory

  Speaking of hypocrisy, how was the move to the free market paradise of Somolia? I'm sure you're Galting over there just fine, and not say? Living under the tyrannical umbrella of a functional government, whilest you demean and decry anyone who would dare talk about the pluses and minuses of government oversight. Because that would make you a giant shit eating hypocrite.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 9:40am

  ### Re: Re: Re: don't wory

  See he made that insult all by himself!

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 9:32am

  ### Re: Re: don't wory

  yah trump save us with so much big bussiness
  america great death to regulartos

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:15am

  ### Re: don't wory

  Save us from our money, sure.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:25am

  ### Re: Re: don't wory

  you probably couldn't even save yourself from a mirror.

  [ reply to this | link to this | view in chronology ]

- hij (profile), 26 Sep 2017 @ 8:56am

  ### Re: don't wory

  Yeah, regulation is the worst! Just this past Sunday I was watching a football game, and the whole thing was ruined by burdensome officials and their stifling oversight. Without a doubt the game would be much more exciting and move much faster if you could just rid of those pesky rules and the pin striped regulators dragging the whole game down.
  Also, they should get rid of huddles. They are just plain ridiculous. Who in their right mind wants to go to that many meetings in one day?

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 9:14am

  ### Re: Re: don't wory

  ung, one bad word about regulation and entire teams rush the field in attempts to win Gold in the Suck Regulatory Dick Olympics.
  #1. "Yeah, regulation is the worst! Just this past Sunday I was watching a football game, and the whole thing was ruined by burdensome officials and their stifling oversight."
  not even in the same ballpark you silly twit... The NFL can create any rule they want, they are not the government and if I don't like them, I can just go elsewhere for my entertainment.
  #2. "Without a doubt the game would be much more exciting and move much faster if you could just rid of those pesky rules and the pin striped regulators dragging the whole game down."
  That... might be entertaining to watch, actually. I don't watch football, but would consider watching in this case. Hell, I think it would be great to watch a game of football with 4 teams on a cross shaped field as they risk collision with each other as a way to mix things up.
  #3. "Also, they should get rid of huddles."
  Why? Sure removing them while coaches have to call plays without any time to think about them could add to even more chaos and fun on the field but whatever.
  #4. "Who in their right mind wants to go to that many meetings in one day?"
  Work in IT, the only thing a meeting is good for is to serve as a marker for the amount time wasted where work is not getting done.

  [ reply to this | link to this | view in chronology ]

- John Gaskill, 26 Sep 2017 @ 6:37am

  ### Corporate Welfare Entitlement Junkie Whining

  I remember when MCI came on the scene and AT&T had a meltdown over the prospect of competition.
  I'm hearing that same, sad old song all over again.

  [ reply to this | link to this | view in chronology ]

- limbodog (profile), 26 Sep 2017 @ 6:53am
  We need the "How it Should Have Ended" guys to start doing PR campaign parodies.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 7:13am
  With the current administration in the White House, the DOJ, and FCC, they don't even need to do much in the way of PR spin. It'll be a rubber stamp.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 7:46am

  ### No benefit to consumers.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 7:58am

  ### Re: No benefit to consumers.

  Google Fi will have to step up their game if it goes through, so at least for my cell coverage it'd be a win...eventually.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:01am

  ### No benefit to consumers.

  The two companies use two different cellular technologies that are incompatible with each other. CDMA (Sprint) and GSM (T-Mobile). Some like usatoday are spinning this off as a good thing by falsely claiming that existing customers of one company may suddenly get a boost in service quality / availability. But that's only true if said customer's device is a hybrid model that has two cell radios in it, (One for CDMA the other for GSM), and both have to be activated for use. (Massive battery drain.) Most people won't get any additional benefit.

  Worse, as we all know about acquisitions, there will be layoffs. No, I don't mean the people kind. I mean the network kind. As in, eventually the resulting company will tire of maintaining two separate and incompatible networks. Further they will tire of their public perception going down the drain due to people attempting to buy service for use with an incompatible phone and people blaming the company for "poor coverage". Eventually, they will need to pick one or the other. If they choose GSM, the former Sprint customers will get screwed again. (They already had to pay to switch to CDMA previously due to another corporate maneuver.) If they choose CDMA, the only GSM network in the US will be AT&T and it's resellers, making the US cell infrastructure mostly incompatible with international devices. (Tourism just can't get a break can it?) Though I'd imagine they'll play up such a decision by declaring the end of burner phones due to the end of SIM cards....

  We get nothing out of this. It's more jobs lost, greater lack of competition, and a cost for us to bare when the inevitable "We're killing X" happens.

  [ reply to this | link to this | view in chronology ]

- Drake, 26 Sep 2017 @ 8:52am

  ### Re: No benefit to consumers.

  Tmobile has absorbed a competing network tech before and transitioned quite smoothly (Metro PCS).
  They won't keep both going very long at all.
  I am a happy Tmo customer, and am concerned about the deal, but I will say I'm a lot happier now that Tmo is the bigger side of it. When first announced and it was going to be Sprint/Softbank in charge, I was far more concerned.
  Sprint has pretty much given up on competing, so this is a best case scenario merger (still not good though).
  I think you are over estimating the trouble of merging the networks though.

  [ reply to this | link to this | view in chronology ]

- Capt ICE Enforcer, 26 Sep 2017 @ 8:26am

  ### Ready, Set...

  This buttercup has buckled up. Ready for the ride.

  [ reply to this | link to this | view in chronology ]

- Anonymous Coward, 26 Sep 2017 @ 8:45am
  It's an interesting point that unlimited plans have come back because of increased competition. If residential Internet ISPs had more competition, limited plans wouldn't be as wide spread as they've become.

  [ reply to this | link to this | view in chronology ]

- hij (profile), 26 Sep 2017 @ 8:59am

  ### Had me until the end

  I was with you right up until the end. Everything sounds right on until I read the part about Comcast buying Sprint. That was the exact moment I had my giggle fit at the idea that Comcast was used as a good example of capitalism in the context of competition.

  [ reply to this | link to this | view in chronology ]

- XcOM987 (profile), 26 Sep 2017 @ 9:28am

  ### FULL HOUSE!

  Oh good, we get to play megamerger bingo again!

  [ reply to this | link to this | view in chronology ]

### Add Your Comment

Have a Techdirt Account? Sign in now. Want one? Register here
Name |
Email | Get Techdirt’s Daily Email
URL |
Subject |
Comment | this is for spambots, do not use this
Options | Use markdown for basic formatting. HTML is no longer supported.
| Save me a cookie

Close

Have a Techdirt Account? Sign in now. Want one? Register here
Name |
Email | Get Techdirt’s Daily Email
URL |
Subject |
Comment | this is for spambots, do not use this
Options | Use markdown for basic formatting. HTML is no longer supported.
| Save me a cookie

Members Of Trump's Admin Team Using... >>
<< UK Man Gets 12-Month Sentence For Refusing To...
<< Verizon Hangs Up On Tens Of Thousands Of...
Follow Techdirt

### Techdirt Daily Newsletter

Techdirt Gear
Advertisement
Report this ad | Hide Techdirt ads
Essential Reading

#### Hot Topics

- 6.3 Appeals Court Tells Patent Trolls' Favorite Judge He Can't Just Ignore The Supreme Court To Keep Patent Cases In Texas
- 5.4 Prepare For An Epic Bullshit Sales Pitch For The Competition-Killing Sprint, T-Mobile Merger
- 5.4 British News Channel Touts Amazon Bomb Materials Moral Panic That Ends Up Being About Hobbyists And School Labs

#### New To Techdirt?

Explore some core concepts:

- The Grand Unified Theory On The Economics Of Free
- Infinity Is Your Friend In Economics
- The Future Of Music Business Models (And Those Who Are Already There)

read all »

Techdirt Deals
Report this ad | Hide Techdirt ads
Techdirt Insider Chat

Join the Insider Chat

Advertisement
Report this ad | Hide Techdirt ads
Recent Stories

## Tuesday
06:23 | Prepare For An Epic Bullshit Sales Pitch For The Competition-Killing Sprint, T-Mobile Merger (31)
## Wednesday
13:30 | Verizon Hangs Up On Tens Of Thousands Of 'Unlimited' Wireless Customers For Using Too Much Data (20)
## Friday
12:05 | Unlimited Data Customers Report Fewer Network Problems Than Capped Users (9)

##### More

Advertisement
Report this ad | Hide Techdirt ads

# Tools & Services

Twitter
Facebook
RSS
Podcast
Techdirt for Mobile
Research & Reports

# Company

About Us
Advertising Policies
Privacy

# Contact

Help & Feedback
Media Kit
Sponsor/Advertise
Submit a Story

# More

Copia Institute
Insight Community
Step2
Insider Shop
Brought to you by Floor64
Close

Email This

This feature is only available to registered users. Register or sign in to use it.