This time Executive Vice President John Legere and Sprint, Managing Director, Marcelo Claure, witnessed that a House's subcommittee on antitrust explained how their proposed US $ 26.5 billion merger would not lead to higher prices for consumers and hurt US jobs. Legends were also pushed for $ 195,000 his company has spent on President Donald Trump's Washington DC hotel since the merger was announced last April.
In January, the Washington Post reported that nine T-Mobile executives, including Legere, were listed as VIP guests in the hotel one day after the merger was announced. Posten reported that the management of the ten months that followed the merger was held in the hotel a total of 52 times.
Rep. Hank Johnson, a Democrat from Georgia, asked Legere how he thought it looked to the American people that he was starting to stay at the Trump hotel just after the merger was announced, given that T-Mobile and Sprint needed approval for the Federal Communications Commission merger and the US Justice Department.
"You understand the optics of it? What does it look like?" he asked. "It looks like what's going on is that T-Mobile is trying to curry service with the White House."
Legends said he was a "prolonged Trump hotel stayer."
Rep. Pramila Jayapal, a Washington Democrat, also said the situation was so suspicious, especially since President Trump tried to "get involved in the AT&T and Time Warner merger."
"There is reason to look at this issue of what happened at the Trump hotels," she said. "We want to make sure it doesn't happen today."
The Republicans played down the problem. Rep. Jim Sensen burner, from Wisconsin, said he was "embarrassed" by the question. Rep. Ken Buck, from Colorado, tried to joke the problem.
"I ate dinner at the Trump Hotel three weeks ago," he said. "I wonder if I have a conflict of interest?"
Other Problems with the Merger
Democrats in the committee also expressed skepticism about T-Mobile's claim that after the merger will create thousands of jobs, reduce prices, support FCC's Lifeline support and provide nationwide 5G services across the country.
The leading democrat in the subcommittee, Rep. David Cicilline, on Rhode Island, said he was "deeply skeptical that consolidation is the way forward" in lowering prices and increasing competition.
Despite this, the company's executives continued to defend their plan to combine the third and fourth largest wireless operators in the United States to accept rivals AT & T and Verizon. They argued that only by combining would they be able to compete aggressively in 5G against AT&T and Verizon, which together control more than 70 percent of the market.
Men Rep. Jerrold Nadler of New York, relying on the Judiciary Committee, was one of several Democrats who seemed unconvinced that reducing the number of players in the nationwide wireless market from four to three is a good idea.
"I'm worried about a merger that will significantly increase concentration in a market that is already very concentrated," he said.
He added that after the merger, "the company can no longer have any market-based incentive at lower prices and to offer consumer policies as large as the other two carriers."
Nadler said he was worried that poor and minority customers would get the most out of the negative consequences.
"Because the proposed transaction will also consolidate the market for these services, it may have disproportionate negative effects on low-income households," he said. 19659006] Last month, House Democrats on the Energy and Trade Committeethat will lower prices, not cut jobs and provide 5G services to rural areas as a result of the merger.
The FCC paused the merger last week, saying it needs time to review the company's plans to deliver fixed wireless broadband.
In a blog post after the hearing, Legere said he welcomed the exchange with lawmakers and that he is willing to continue the fight for "New T-Mobile."
"We've spent a lot of time meeting with lawmakers, regulators, and staffs in Washington DC and around the country to share our plans to deliver a new T-Mobile that's good for consumers and the marketplace," he said. happy in today's discussion because I believe in this merger. I believe in New T-Mobile and I know it's a win-win for consumers in America. "