August 06, 2018
Peter Adderton, founder of Boost Mobile, has promised to save the prepaid segment from a potential collapse if the merger of Sprint and T-Mobile is approved without any major problems from the companies.
Adderton is urging both the Federal Communications Commission and Department of Justice to order divestments from both companies before giving their approval. He said approving the merger would bring down the amount of U.S. mobile service providers to three. Adderton said this move would hurt the prepaid consumer, which tend to be poorer.
Adderton said the T-Mobile/Sprint merger could, in time, result in Virgin Mobile and Boost Mobile, along with MetroPCS, to combine. If this happens, it would leave very little competition for the prepaid industry, which could result in no affordable choices for consumers. Both AT&T and Verizon have very little investments in that market because of the slim profit margins it brings.
He said with T-Mobile and Sprint merging it would be a disaster for the prepaid competition. Adderton said it would be the government's best interest to do a federal intervention to ensure everything went smoothly and the merger would hurt no one.
Adderton has promised to offer a $9.95 a month monthly plan that includes unlimited 4G-based wireless service. He said any competing offers from the two merged companies was like to be much more expensive. Adderton's promise is the result of making sure low-income families have access to a broadband service.