Labor group urges state AGs to fight T-Mobile-Sprint merger

Labor group urges state AGs to fight T-Mobile-Sprint merger
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A labor group is urging state attorneys general across the country to fight the proposed T-Mobile-Sprint merger, arguing that the deal will kill jobs and raise prices for consumers.

Last week, Christopher Shelton, the president of the Communications Workers of America, sent letters to all 50 state attorneys general detailing an analysis that found the deal would lead to 28,000 jobs being cut nationwide.

“The proposed T-Mobile/Sprint merger proves to be a much greater threat than benefit to consumers and workers,” Shelton said in a statement Monday. “We hope that State Attorneys General will heed our calls for a thorough investigation in order to protect both jobs and the competitive wireless market.”

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The letters were sent on Sept. 10 and first reported by Reuters on Friday.

Shelton also echoed the concerns of other critics who worry about the effects of such a major merger in a wireless market that’s already heavily concentrated. The combination would reduce the number of national wireless providers from four to three.

A spokesman for T-Mobile did not immediately respond when asked for comment.

The two companies have pitched the $26 billion deal as a job creator and argued that the combination is necessary for them to compete with Verizon and AT&T in developing a 5G wireless network.

But Shelton questioned those assertions, noting that both T-Mobile and Sprint had told investors prior to the merger being announced that they are well-positioned to develop next-generation capabilities.

“These concerns compel a thorough investigation and action to protect wireless workers’ interest in good jobs and consumers’ interest in a vibrant, competitive wireless market,” he wrote.