Over the past decade, the wireless industry has aggressively consolidated, leaving consumers with only four choices for national cell phone providers. Sprint and T-Mobile have both carved out a niche in the marketplace by providing lower cost plans, shorter contracts, and other consumer-friendly practices, compared to their rivals AT&T and Verizon. Sprint and T-Mobile compete directly with each other for the same market share, which results in higher quality plans and lower costs for their customers, many of whom are low-income and people of color. A merger between Sprint and T-Mobile would disproportionately and negatively impact these consumers, and lead to higher prices for all wireless customers. I am calling on the Commission to deny Sprint and T-Mobile’s request to merge.
This week, the California Public Utilities Commission (CPUC) will be holding public forums throughout the state to get input from citizens about the proposed merger between Sprint and T-Mobile.
We're going to be at the forum in Los Angeles, and we plan on delivering signatures from Californians like you opposing the merger.
Add your name now: Tell the CPUC to use its power to block the Sprint/T-Mobile merger!
A successful merger between Sprint and T-Mobile would be a disaster for consumers, workers, and their communities.
If Sprint and T-Mobile merge, the US would have only three national wireless carriers with roughly the same market share, making it very likely they would stop competing head-to-head for customers, according to the American Antitrust Institute. That means higher prices, lower quality plans, and worse customer service for everybody.
One need only look to the airline industry to see the dangers in having only three major players in the market. As the major airlines gobbled each other up, the result for most passengers has been nothing but more and higher fees, fewer flights, smaller seats, less legroom, and bare-bones in-flight service.
This merger is a terrible deal for communities of color and low-income consumers. People of color make up over half of T-Mobile’s customers, and nearly half of Sprint’s. Even greater numbers of their pre-paid cell phone brands’ (MetroPCS and Boost) are people of color. By comparison, only 35% and 27% of AT&T and Verizon’s customers respectively are people of color.
T-Mobile shook up the wireless industry when it introduced consumer-friendly policies like no annual contracts and no roaming charges, and Sprint has the cheapest plans of any of the national wireless carriers.
Unsurprisingly, T-Mobile is the most popular wireless provider for people with income under $75,000/year. 83% of customers of Sprint’s Boost pre-paid plan are also in that income range. One-third of MetroPCS and Boost Mobile’s customers have incomes of less than $25,000/year. Of all the carriers, T-Mobile and Sprint’s customer base is the least able to afford higher prices.
Sign the petition: Tell the CPUC to stop the Sprint/T-Mobile merger!
Finally, a Sprint/T-Mobile merger will cost thousands of jobs. According to the Communications Workers of America, the union that represents wireless and telecommunications workers, 28,000 people will lose their jobs as a result of this merger, including 4,500 at the companies’ respective headquarters.
We've been campaigning for months to get the FCC to block this merger. We're continuing that fight, but the CPUC also has the power to stop this. That's why we need as many Californians as possible to sign their names to this petition.
SIGN NOW: Tell the CPUC to block the Sprint/T-Mobile merger!