Mobile CEO promises the same or better prices following Sprint Merger
Feb 08 2019
Despite being the fastest-growing carrier in recent years, T-Mobile rounded out 2018 with 80 million subscribers. CEO John Legere said in the company's earnings announcement. At $640 million - or $0.75 per share - T-Mobile profits still came in ahead of analyst expectations. And top T-Mobile execs, including chief executive John Legere, have spentsignificant time staying at the Trump hotel in Washington, though Legere has said he hopes regulators will "make their decision based on the benefits it will bring to the US, not based on hotel choices".
Shares of T-Mobile were down 3.69 percent as of 4:04 p.m. ET on Tuesday, while shares of Sprint were down 6.09 percent.
The letter also implies that following the merger, consumers will get more bang for their buck.
From his perspective, "regulators are ignoring the noise and conducting a fact-based review". The hearing is set for February 13, and both Legere and Sprint Chairman Marcelo Claure have agreed to testify.
"Critics of our merger, largely employed by Big Telco and Big Cable, have principally argued that we are going to raise rates right after the merger closes". Monroe County has already contacted T-Mobile to offer our unique workforce development programming, like LadderzUp and Recruiting on the Road, to help link our residents to the company's new jobs here. "We're entering the final stages of our regulatory review process and it's an important time to document the commitment we've made from day one". To this, T-Mobile rebuts that if it did jack its prices up, its customers would lose faith in the company, loyal customers would leave, and it would destroy the future of the carrier. "The combination has a multiplicative effect on the total available network capacity, and that's very exciting because pricing in the industry is a function of your costs and it's a function of your capacity". T-Mobile is targeting $12.7 billion to $13.2 billion in adjusted Ebitda in 2019, also slightly behind Wall Street's previous $13.4 billion estimate.