Press Releases
03/11/2020
Attorney General Tong Announces Settlement Ending Connecticut's Challenge to T-Mobile, Sprint Merger
(Hartford, CT) – Attorney General William Tong today announced a settlement with T-Mobile, resolving the state’s challenge to the company’s merger with Sprint. The settlement includes terms to protect low income subscribers, extend access to underserved communities, protect current T-Mobile and Sprint employees, and preserve jobs in Connecticut. T-Mobile will reimburse Connecticut for the costs and fees of its investigation and its litigation challenging the merger. This settlement ends the legal challenge brought by Attorney General Tong and a multistate coalition, which alleged that the merger was unlawful and would lead to reduced competition and increased prices for consumers. Connecticut and the plaintiff states will not appeal the court’s ruling in the matter.
“We fought this merger to protect Connecticut consumers, preserve local jobs, and ensure broadband access for underserved and vulnerable communities. Although we would have preferred a different outcome in court, this settlement achieves many of those goals,” said Attorney General William Tong. “Loss of competition is never good for consumers. Phone bills are far too high as it is. While I would have preferred this megamerger not to move forward, I am pleased to have secured significant concessions for Connecticut consumers to lock in rates and protect Connecticut jobs.”
As required by the settlement, the merged company is required to:
• Make low-cost plans available in Connecticut for at least 5 years, including a plan offering 2 GB of high-speed data at $15 per month and 5 GB of high speed data at $25 per month;
• Extend for at least an additional two years the rate plans offered by T-Mobile pursuant to its earlier FCC commitment, ensuring Connecticut residents can retain T-Mobile plans held in February 2019 for a total of five years;
• Offer 100 GB of no-cost broadband internet service per year for five years and a free mobile Wi-Fi hotspot device to 10 million qualifying low-income households not currently connected to broadband nationwide, as well as the option to purchase select Wi-Fi enabled tablets at the company’s cost for each qualifying household;
• Protect Connecticut jobs by offering all Connecticut T-Mobile and Sprint retail employees in good standing an offer of substantially similar employment;
• Increase diversity by increasing the participation rate in its employee Diversity and Inclusion program to 60 percent participation within three years; and
• Reimburse Connecticut and other coalition states up to $15 million for the costs of the investigation and litigation challenging the merger.
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Media Contact:
Elizabeth Benton
elizabeth.benton@ct.gov
860-808-5324 (office)
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attorney.general@ct.gov