SPONSORED:

Dems urge regulators to reject T-Mobile, Sprint merger

A group of eight Democratic senators on Tuesday sent lengthy letters to the Federal Communications Commission and Department of Justice (DOJ) spelling out the reasons why they want regulators to reject the proposed $26 billion merger between T-Mobile and Sprint.

The senators sent the 6,000-word letters one day before the House Judiciary and House Energy and Commerce committees are set to hold hearings examining the proposed merger, which has divided Democrats and aggravated antitrust advocates.

ADVERTISEMENT

The letters raise concerns that the merger, which would combine two of the nation's four largest mobile carriers, could harm consumers and workers by decreasing competition and creating higher costs for customers.

"For more than 30 years, our enforcers have understood that fostering robust competition in telecommunications markets is the best way to provide every American with access to high-quality, cutting-edge communications at a reasonable price," the senators wrote. "This merger will turn the clock back, returning Americans to the dark days of heavily consolidated markets and less competition, with all of the resulting harms."

The initiative was led by Sen. Richard Blumenthal (D-Conn.), a member of the Senate Commerce Committee. 

Four of the eight senators who signed onto the letter have announced 2020 Democratic presidential bids — Sens. Kirsten GillibrandKirsten GillibrandHillicon Valley: Facebook, Twitter's handling of New York Post article raises election night concerns | FCC to move forward with considering order targeting tech's liability shield | YouTube expands polices to tackle QAnon Democrats question Amazon over reported interference of workers' rights to organize Dueling town halls represent high stakes for Trump MORE (D-N.Y.), Elizabeth WarrenElizabeth WarrenOvernight Health Care: Trump takes criticism of Fauci to a new level | GOP Health Committee chairman defends Fauci | Birx confronted Pence about Atlas Senate Democrats call for ramped up Capitol coronavirus testing Government watchdog to investigate allegations of Trump interference at CDC, FDA MORE (D-Mass.), Amy KlobucharAmy Klobuchar Senate Democrats call for ramped up Capitol coronavirus testing Senate Democrats seek to alleviate public concern about some results not being available on election night Washington flooded with Women's March protesters ahead of Barrett confirmation vote MORE (D-Minn.), and Cory BookerCory Anthony BookerBooker 'outs' Cruz as vegan; Cruz jokingly decries 'scurrilous attack' Why Latinos should oppose Barrett confirmation Judiciary Committee sets vote on Barrett's nomination for next week MORE (D-N.J.) — while two have said they are eyeing bids — Sens. Bernie SandersBernie SandersThe Hill's Morning Report - Sponsored by Goldman Sachs - Tipping point week for Trump, Biden, Congress, voters Biden and Schumer face battles with left if Democrats win big Push to expand Supreme Court faces Democratic buzzsaw MORE (I-Vt.) and Sherrod BrownSherrod Campbell Brown Senate Democrats call for ramped up Capitol coronavirus testing Dems to focus on issues, not character, at Barrett hearings Mnuchin says he and Pelosi have agreed to restart coronavirus stimulus talks MORE (D-Ohio). The other signatories are Senate Commerce Committee members Tom UdallThomas (Tom) Stewart UdallOVERNIGHT ENERGY: Judge tosses land management plans after ousting Pendley from role | Trump says he could out-raise Biden with calls to Wall Street, oil execs | Supreme Court to review Trump border wall funding, asylum policies OVERNIGHT ENERGY: Pendley says court decision ousting him from BLM has had 'no impact' | Court strikes down Obama-era rule targeting methane leaks from public lands drilling | Feds sued over no longer allowing polluters to pay for environmental projects  Pendley says court decision ousting him from BLM has had 'no impact' MORE (D-N.M.) and Ed MarkeyEdward (Ed) John MarkeySenate Republicans offer constitutional amendment to block Supreme Court packing Time to honor the 'ghosts' of WWII OVERNIGHT ENERGY: Federal officials press concerns about proposed mine near Georgia swamp, documents show | Trump falsely claims Green New Deal calls for 'tiny little windows' | Interior appeals migratory bird ruling MORE (D-Mass.).

The House Energy and Commerce Committee will hold a hearing about the merger on Wednesday while the House Judiciary Committee will hold a separate hearing on Thursday.

T-Mobile's CEO and president, John Legere; Sprint's executive chairman, Marcelo Claure; and the president of the country's largest communications and media labor union, Communications Workers of America, along with other advocates and critics of the deal, are set to testify on Wednesday. 

The deal does not need congressional approval, but its detractors in Congress have urged the FCC or DOJ to block the merger. 

In their letters, the senators wrote that the merger would amount to a "sharp blow to competition in the telecommunications industry," raising concerns that the deal would "eliminate competition that has been shown to benefit consumers and stifle the emergence of new carriers." 

They cited studies that have estimated the merger will lead to higher monthly payments for customers.

The companies have argued that the merger could help them better compete with Verizon and AT&T in deploying the next-generation wireless networks known as 5G.

The senators in the letter disputed this argument, writing that both T-Mobile and Sprint had previously announced individual plans to roll out their own 5G networks.

"T-Mobile’s and Sprint’s sudden claims that neither can create a competitive 5G network separately flies in the face of announcements, disclosures, and marketing to consumers and investors over the past two years," they wrote.

The letters are a bold message to regulators as T-Mobile and Spring ramp up their merger push. 

Rep. Anna EshooAnna Georges EshooHow to expand rural broadband, fast and affordably Hillicon Valley: Productivity, fatigue, cybersecurity emerge as top concerns amid pandemic | Facebook critics launch alternative oversight board | Google to temporarily bar election ads after polls close Lawmakers introduce legislation to boost cybersecurity of local governments, small businesses MORE (D-Calif.), a senior member of the House Energy and Commerce Committee, at the end of January released a letter with a bipartisan group of lawmakers lauding the proposed deal. The lawmakers, including six Republicans and six Democrats, wrote that they support T-Mobile and Sprint combining their "spectrum resources" to "deliver a more robust wireless broadband network for consumers."

The FCC and DOJ did not immediately respond to The Hill's requests for comment.

Legere recently pledged that T-Mobile and Sprint would not raise prices for consumers for at least three years.

"A three year rate lock is an inadequate short-term solution to the long-term structural problem that the merger will create," the senators wrote in the letters released Tuesday. "Only competitive market pressures can keep rates down over the long run, not temporary rate caps."

"The bottom line is that no such commitments would be necessary if the Department of Justice blocks this merger and allows the market to continue disciplining consumer costs," they added.

Updated at 1:30 p.m.