NEW YORK (Reuters) – Executives at Sprint Corp., testified Monday that the U.S. mobile service provider, has struggled to improve its network, and it is hindering the growth of, and emphasis on the need to merge with larger rival T-Mobile US, Inc.
U.S. state attorneys general, led by New York and California, the complain to stop the merger.
In the states, it seeks to prove, in a Manhattan federal court ruled that the deal between the No. 3 and No. 4 wireless carriers would have to increase the prices, especially for users of prepaid plans. The state attorneys general, all Democrats, asked Judge Victor marrero to get the companies to opt out of the deal.
Sprint’s Chief Marketing Officer, Roger Sole, testified that the company’s strategy to entice customers of competitors which have been incorporated to prune the prices.
But, he said, to promote the early success and disappeared rather quickly due to customers having a negative experience with Sprint, the quality of the network.
In an attempt to show how the competitive discount prices, the state presented evidence that a two-up Sprint to the implementation of an aggressive promotion will, in 2016, to offer phone plans that are comparable to those of Verizon, AT&T, T-Mobile, T-Mobile’s MetroPCS prepaid brand is instantly reduced to the rates in the schedule.
The evidence is at the core of the states ‘ argument that Sprint and T-Mobile as a stand-alone enterprises, the strength of competition among carriers to provide the best possible deal for the consumer.
The lawyers for the states also presented evidence suggesting Sprint and wanted to get more money from each customer.
In the WhatsApp messages of 2017, in between the Sole and Marcelo Claure, the former CEO of Sprint, the Sole proposed merger with T-Mobile would increase Sprint’s average revenue per user of $5.
In his statement before the trial, the Sole and said that it was just an idea that price increases could be “very, very far away from you.”
The companies claim to be the stronger one, T-Mobile, which would result from the proposed $26.5 billion acquisition would be in a better position to innovate and compete to reduce wireless prices. The case is a breach of the customary practice of the states in co-ordination with the federal government on the review of the merger and, generally, in order to arrive at a conclusion.
The deal that was being considered in 2014, when the Obama administration, but the Ministry of Justice and the Federal Communications Commission called on the companies to drop it, which they did.
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The Trumpet of the administration has been signed, after the companies agreed to sell Sprint’s prepaid businesses, which is very popular with people who have a bad credit, the satellite tv company, Dish Network Corp. (a).
However, the setting up of the satellite DISH and a wireless carrier, “will not be enough to mitigate the merger’s competitive harm,” the states argued in a court filing.
Deutsche Telekom CEO Timotheus Höttges, in which the company is the majority shareholder of T-Mobile will testify on Tuesday.
Reporting by Diane Bartz, Sheila Dang; Additional reporting by Brendan Pierson; Editing by Daniel Wallis, Nick Zieminski and Dan Grebler