Sprint Warns of Competitive Woes Without T-Mobile; Others Oppose Deal

Sprint told the FCC it won’t provide much competition without its deal with T-Mobile, said a letter posted Tuesday in docket 18-197. Meanwhile, public interest and consumer groups filed a petition urging the FCC to reject the deal. “Sprint is in a very difficult situation that is only getting worse,” the carrier said. “Sprint’s network lacks the coverage and consistency that customers demand. Sprint’s lack of low band spectrum is at the root of these network problems, and that problem cannot be fixed because there is no low band spectrum available that Sprint could buy.” Sprint said it's losing customers and seeing lower revenue and cash flow “further limiting its ability to invest in its network and service its debt. Simply put, Sprint is not on a sustainable competitive path.” Free Press, the Communications Workers of America, Common Cause, the Demand Progress Education Fund and other public interest groups said they filed 60,000 petitions at the FCC Tuesday opposing the deal. “Despite claims made by T-Mobile and Sprint executives[,] the deal would reduce competition, raise prices and result in the loss of as many as 30,000 jobs,” the groups said: “It won’t advance their stated goal of faster 5G deployment and improved rural broadband service." Industry officials said the number of petitions and how many are real is difficult to verify. On Monday, CWA reported on a meeting with Commissioner Jessica Rosenworcel on its case against the transaction. DOJ staffers told the two companies the deal is unlikely to be approved as structured, The Wall Street Journal reported Tuesday, citing unnamed sources.