Sprint, T-Mobile merger faces Congressional scrutiny

T-Mobile and Sprint executives appeared before a Congressional hearing Wednesday, drawing renewed and intense scrutiny from Democrats over their proposed $26.5 billion merger.

Many of the lawmakers’ concerns focused on the potential price hike that could result from the merger, which would consolidate the third- and fourth-largest U.S. wireless carriers.

Rep. Jerry McNerney, D-California, said many of his low-income constituents may be “priced out” if prices increased.

T-Mobile CEO and President John Legere reiterated his pledge that the merged company will not increase prices.

“Our opponents are wrong when they claim the merger will lead to higher prices,” Legere said, adding that the deal can “ensure U.S. leadership in 5G, increase competition and create American jobs.”

While the Democratic-controlled Congress does not directly approve or reject mergers, lawmakers can influence regulators at the U.S. Department of Justice and the Federal Communications Commission who deliberate on such deals.

Read more: Bloomberg

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