T-Mobile US asks California to ease conditions imposed during merger with Sprint

News Wireless United States 24 JUN 2020
T-Mobile US asks California to ease conditions imposed during merger with Sprint
T-Mobile US has filed a request to California’s Public Utilities Commission, asking for an easing of certain conditions imposed on the company when the state cleared its takeover of Sprint. Among the commitments, the operator said it would add at least 1,000 jobs in California, compared to the total number of Sprint and T-Mobile US employees pre-merger, and that it would provide 5G, with speeds of at least 100 Mbps, to virtually all (99%) of the state’s population by end 2026, with 300 Mbps provided to 93 percent by 2024.

In the filing, T-Mobile US asked the state to take into account the “changed circumstances that have developed since the adoption of the decision.” The company said the hiring goal was “burdensome, especially in light of the economic disruption created by the covid-19 crisis.” 

For the rollout of 300 Mbps, the company asked the state to correct the date of completion, which it said should be six years after close, and so 2026 instead of 2024. The company asked for the “mistakenly noted” date to be corrected. 

T-Mobile US told Cnet that it still commits to have the same amount of staff or even more than what the to-be-merged companies had in California at deal completion. The company is however disputing the demand for 1,000 more jobs, saying the commission does not have the authority to ask this. 

Backpedalling on commitments

The Communication Workers of America union rued the move, noting statements by T-Mobile US chief executive Mike Sievert, saying the recent job cuts were part of a transition and that the company would create 5,000 new positions in retail and engineering. The company is now “backpedalling” on its commitments, the union said, even though it said earlier that it was uniquely positioned amid the economy rebound as a growth company in telecom and that it had already started laying the foundation to the future.  

The CWA noted its filing to the FCC in 2018m, when it estimated the merger would eliminate some 30,000 jobs. So far, reports in April said T-Mobile US planned to close 1,500-2,000 Metro by T-Mobile stores. The company has cut 241 positions at the former Sprint headquarters in Kansas and started other type of job cuts, though no specific number could be given here.

 

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