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ATTORNEY GENERAL HERRING SECURES PRO-CONSUMER PROTECTIONS IN SETTLEMENT OVER T-MOBILE, SPRINT MERGER

~ The agreement includes terms to protect low income subscribers, extend access to underserved communities, and protect current T-Mobile and Sprint employees ~

RICHMOND (March 11, 2020) – Virginia Attorney General Mark R. Herring today announced a settlement with T-Mobile, resolving the Virginia’s challenge to the company’s merger with Sprint. The agreement includes terms to protect low income subscribers, extend access to underserved communities, and protect current T-Mobile and Sprint employees. T-Mobile also will reimburse Virginia for the costs and fees of its investigation and its litigation challenging the merger. This agreement resolves the legal challenge brought by Attorney General Herring and several other states, which alleged that the merger was unlawful and would lead to reduced competition and increased prices for consumers. 

“My colleagues and I vigorously challenged the T-Mobile/Sprint merger because we were concerned that it would leave consumers with higher prices and less choices and would lead to reduced innovation in the telecom industry,” said Attorney General Herring. “I take my responsibility to protect Virginia consumers very seriously and strongly believed in our case. While I disagree with the Court’s decision to approve the merger, it still emphasized the importance of local market competition in mergers and the importance of state enforcers. This agreement will protect existing jobs in Virginia, give price protections for low-cost plans, and extend broadband access to our lower-income households with children."

As required by the settlement, the merged company is required to:
  • Make low-cost plans available in Virginia for at least 5 years, including a plan offering 2 GB of high-speed data at $15 per month and 5 GB of high-speed data at $25 per month;
  • Extend for at least an additional two years the rate plans currently offered by T-Mobile pursuant to its earlier FCC commitment, ensuring Virginians can retain T-Mobile plans held in February 2019 for a total of five years;
  • Offer 100 GB of no-cost broadband internet service per year for five years and a free mobile Wi-Fi hotspot device to 10 million qualifying low-income households not currently connected to broadband nationwide, as well as the option to purchase select Wi-Fi enabled tablets at the company’s cost for each qualifying household;
  • Protect Virginia jobs by offering all Virginia T-Mobile and Sprint retail employees in good standing an offer of substantially similar employment. T-Mobile also commits that three years after the closing date, the total number of new T-Mobile employees will be equal to or greater than the current total number of employees of the unmerged Sprint and T-Mobile companies;
  • Increase diversity by increasing the participation rate in its employee Diversity and Inclusion program to 60 percent participation within three years; and
  • Reimburse Virginia and other plaintiff states up to $15 million for the costs of the investigation and litigation challenging the merger.
Joining Attorney General Herring in this agreement are the attorneys general of Connecticut, the District of Columbia, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Oregon, Pennsylvania and Wisconsin.

 

 

 

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