Page 24 - aruba-today-20190727

A24 TECHNOLOGY
Saturday 27 July 2019

AP Explains: What T-Mobile takeover of Sprint means for you

By MAE ANDERSON and
TALI ARBEL
AP Technology Writers
NEW YORK (AP) — U.S.
antitrust regulators have
cleared T-Mobile's $26.5 bil-
lion takeover of rival Sprint,
leaving just three major
cellphone companies,
while creating a smaller
competitor in satellite-TV
company Dish.
While there are still a few
hurdles to be cleared for
the deal to close, here's
what a combined T-Mo-
bile-Sprint company could
mean for you and your cell-
phone bill:
FOR MOST T-MOBILE AND
SPRINT CUSTOMERS
Sprint customers will be
eventually transferred to
the new T-Mobile, but that
transition will take a few
years. If you are a T-Mobile
customer, you might not This combination of April 30, 2018, file photos shows signage for a Sprint store in New York's Herald Square, top, and signage at a
see many changes. T-Mobile store in New York U.S. regulators are approving T-Mobile's $26.5 billion takeover of rival Sprint, despite fears of higher prices
However, because the and job cuts.
goal of the takeover is to Associated Press
roll out a next-generation says the set-up suggests that the company will con- kets and limited govern- ticularly against China. It
"5G" network, subscribers of Dish won't have an incen- tinue to be the "Un-carrier" ment intervention. promises faster speeds and
both could ultimately see tive to set "aggressively" low and keep Verizon, AT&T WILL THIS DEAL ACTUALLY opportunities for new tech-
faster service. prices. and others on their toes. HAPPEN? nologies.
WHAT ABOUT PREPAID CUS- Dish says it will offer service SO WILL PRICES GO UP OR A federal judge still must Both Sprint and T-Mobile
TOMERS? to 70 percent of the U.S. DOWN? sign off on the approval, have already launched
As part of the deal, Dish will population by 2023. But Opinion is divided. Gen- as it includes conditions for 5G networks in certain cit-
get Sprint's prepaid busi- while it's billed as 5G, Dish erally, fewer competitors the new company. And 14 ies. They have said they will
ness, including Boost Mo- is promising speeds that mean higher prices, which attorneys general are suing be able to do it faster and
bile and Virgin Mobile. are only slightly higher than is part of the reason the to stop the deal. better now than they could
Even if its network isn't what's typical today. Department of Justice re- HOW SOON WOULD T-MO- individually. They have
ready, customers aren't It may take a while be- quired the companies to BILE AND SPRINT ROLL OUT promised to cover 97 per-
supposed to see service fore Dish can challenge sell part of its business to 5G? cent of U.S. in three years
quality drop, as Dish is go- the bigger companies in a Dish to keep the number of 5G is the next generation of and 99 percent in six years.
ing to use T-Mobile's net- way that benefits consum- major wireless providers at wireless service that has be- T-Mobile had said that it
work until it can run its own. ers — if it ever does — the four. come a politically touchy planned to launch a na-
HOW STRONG IS DISH? way T-Mobile developed a "Americans across the subject. President Donald tionwide network by 2020
That's an open question. reputation for itself as the country will likely pay high- Trump has said he wants itself, but didn't have such
Public-interest groups point "Un-carrier." er prices for worse service the U.S. to "win" on 5G, par- specific targets.q
out that Sprint is an existing AND FOR VERIZON AND in a wireless market domi-
company with more than AT&T CUSTOMERS? nated by AT&T, Verizon,
50 million subscribers. T-Mobile was instrumental and T-Mobile," said Barry
Dish would start from in pushing the more estab- Lynn, executive director of
scratch building a network lished players to be more the Open Markets Institute,
that will cost tens of billions. consumer friendly, doing a research group that pro-
It gets only 9 million custom- away with two-year phone motes competition. "The
ers from the deal and will contracts and offering un- problem is especially bad
have to fight to win more. limited data plans. T-Mobile for poor and rural custom-
As for the network, Dish al- has offered goodies for its ers."
ready owns spectrum, or customers like free or dis- But others, including T-Mo-
airwave rights, but hasn't counted Netflix and free bile of course, say prices
been using it. international data. With just won't rise and the deal is
Friday's deal would give three major providers, the good for consumers.
Dish additional airwaves worry is that there would be "Private industry has every
that travel far and work less incentive to add servic- incentive to give American
well in rural areas. es that consumers like or to consumers what they want:
Dish is supposed to put compete on price. faster, better, cheaper
those to use in its own net- T-Mobile has promised not wireless service," said Pat-
work, but it has to rely on to raise prices for three rick Hedger, research fel-
T-Mobile's network in the years, but after that, it's fair low at the Competitive
meantime. MoffettNathan- game. But T-Mobile CEO Enterprise Institute, a think
son analyst Craig Moffett John Legere said Friday tank that favors free mar-