Not many companies need to take measures to slow customer growth but—if the T-Mobile/Sprint merger is blocked—T-Mobile may raise prices to do just that, according to CEO John Legere.
T-Mobile has added at least one million subscribers every quarter for the last 26 quarters. While that represents an enviable rate of growth, it has put a strain on the number three carrier’s network. The merger would give T-Mobile access to Sprint’s large spectrum portfolio, which it plans on using to help shore up its 5G network.
With 13 states and the District of Columbia fighting to block T-Mobile’s acquisition of Sprint, the Associated Press (AP) is reporting that Legere testified yesterday about the repercussions of a failed merger. Calling it his “worst nightmare,” Legere said the company would have to raises prices in an effort to slow user growth and easy strain on the network.
Sprint is obviously not the only option for T-Mobile to gain the needed spectrum. It previously tried merging with Dish Network, a company that also has a great deal of available spectrum. Sprint, however, offers one of the best options, as it also gives T-Mobile a larger subscriber base, giving it the ability to more directly match and compete with Verizon and AT&T.