T-Mobile Chief Executive John Legere defended the $26 billion deal before a House subcommittee, saying the company would be better and faster at building 5G, the next generation of wireless, to compete with industry leaders AT&T Inc and Verizon Communications Inc and would create jobs while prices would not rise.
Tuesday's hearing comes amid revelations that T-Mobile executives spent nearly $200,000 at the Trump International Hotel in Washington after announcing the proposed merger in April 2018. "I'm a longtime Trump hotel stayer, way before this transaction".
"You see how that looks?" What it looks like? The Communications Workers of America has said the deal will eliminate tens of thousands of jobs. Pramila Jayapal (D-WA) and Hank Johnson (D-GA) pressed Legere on whether the company was pining for favorability from the Trump administration in order to receive approval for the merger.
"There is reason to look at these questions of what happened at the Trump hotel, because it has been clear from quite a bit of reporting that President Trump appears to have involved himself in the AT&T/Time Warner merger and we want to make sure that is not happening today", she said.More news: Murdoch's News Corp wants Google split up in Australia
Republicans on the committee disagreed. T-Cellular has spent $195,000 on stays and conferences on the lodge over the previous 11 months, the corporate has stated.
On Tuesday, Jayapal said the issue of the hotel stays was significant because of allegations that Trump may have interfered in the antitrust review of another deal, AT&T's purchase of Time Warner. "I wonder if I have a conflict of interest?"
"Except in 2015, you said you were never going to stay there", said Jayapal, referring to an old Twitter feud with Trump in which Legere had criticized his experience at a different Trump hotel.
Two key House Democrats expressed concern about the agreement to combine the No. 3 and No. 4 USA wireless carriers, which was struck in April. "I am deeply skeptical that consolidation is the path forward to lowering prices, increasing opportunity, or unleashing competition", he added. Assurance Wireless, which is part of Sprint prepaid brand Virgin Mobile, takes part in the Lifeline Assistance program and offers discounted service to those in public assistance programs like Medicaid or SNAP or even a free phone and service to qualifying low-income households.More news: Saudi kingdom pursuing justice in Khashoggi murder, says official
To win support for the deal, T-Mobile previously said it would not increase prices for three years.
T-Mobile is doubling down on its Sprint merger pitch in an apparent effort to adhere with its original timeline and complete the tie-up by the end of June.
Last month at a congressional hearing, House Democrats raised worries about the deal because the US wireless market has just four main carriers.
Verizon's seminal FWA service launched late past year in the form of 5G Home, which the telecom giant unsurprisingly used as a basis for the claim it's first to commercialize the next generation of mobile networks in the United States.More news: Patriots sign free agent WR Bruce Ellington to one-year contract