NEW YORK -- T-Mobile CEO John Legere said if his company's $26.5 billion deal to buy Sprint fails, it may have to raise prices to slow user growth and relieve stress on the T-Mobile network. He said that would be his “worst nightmare.”
Legere's testimony came on the fourth day of a high-profile antitrust trial. Fourteen state attorneys general are suing to block the combination of T-Mobile and Sprint. They say the deal would cost consumers billions.
The trial with the states is a major hurdle for T-Mobile, but federal regulators have already cleared the merger. The Justice Department approved it after T-Mobile and Sprint agreed to set up satellite TV provider Dish as a new wireless competitor. The states say that's not enough.
Legere's testimony regarding T-Mobile's potential pricing strategy Thursday stemmed from a September 2019 T-Mobile document that made projections about T- Mobile's future as a standalone company in 2020.
Pomerantz presented an email Legere sent in June 2015 saying that a potential acquisition of Dish “super-charges” T-Mobile, the same language T-Mobile has used to describe its Sprint deal. Dish, like Sprint, has lots of spectrum, having spent $21 billion buying it. Legere said he liked the possibilities of that deal but that T-Mobile wasn't able to complete it.