T-Mobile to offer $15 phone plan, free 5G service, other freebies to remove hurdle on Sprint merger deal


T-Mobile (NASDAQ: TMUS) announced three big plans that are beneficial to consumers if its merger with Sprint Corporation (NYSE: S) closes as expected next year.

The $26 billion T-Mobile-Sprint merger already obtained approval from the U.S. Federal Communications Commission (FCC) and Department of Justice (DOJ). However, it is still facing a legal challenge from a coalition of state attorneys general, who believe that the deal will reduce competition and is harmful to consumers.

On Thursday, T-Mobile used its Un-carrier event to make a compelling case about the merger by unveiling its next bold moves to further shake-up the U.S. telecommunications industry.

Following the completion of the merger, the new T-Mobile company wants to “bring accessibility and connectivity to the most deserving and underserved consumers across the country.”

T-Mobile wants to use wireless and 5G networks for good

Its three big plans, which the company says represent billions of dollars in investments, include the following:

  • Connecting Heroes Initiative— a 10-year commitment to provide free 5G access, unlimited talk, text and smartphone data to every local and state police, fire and emergency medical service (EMS) agency nationwide.
  • Project 10Million—a new program that aims to eliminate the homework gap by providing free internet access (up to 100 GB) to 10 million households with children.
  • T-Mobile Connect—an unprecedented pricing commitment, a $15 a month prepaid phone service plan for everyone especially for low-income consumers.

In a statement, T-Mobile President and COO Mike Sievert said, “Our first planned New T-Mobile Un-carrier moves and all the commitments we’ve made before today illustrate exactly what we mean when we say we are going to use wireless — and now 5G — for GOOD! The things consumers love about T-Mobile won’t change. We’re still solving pain points and forcing change, but now we’ll be powered by a SUPERCHARGED network that is only possible with a combined T-Mobile and Sprint.”

He added, “We know some still have questions about why we need the New T-Mobile — and have said they need to see certain things in order to agree that it should move forward… Today’s moves show once again how the New T-Mobile will change wireless for GOOD, with more competition, lower prices, and innovative solutions. And the best part is that this is just the beginning of what’s possible. This can all come together with a T-Mobile/Sprint combination…”

During a conference call with reporters, T-Mobile CEO John Legere, stated, “There’s magic in putting these two networks together and that’s why this is critically important.”

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