Will the Mobile Monopoly Negatively Impact Your Business?

Mobile Monopoly Negatively Impact Your Business?

With T-Mobile and Sprint getting closer to a merger, will this mobile monopoly wreak havoc with the cost of pre-paid cell phone plans for businesses? Only time will tell.  

In what some experts are calling a mobile monopoly, T-Mobile and Sprint are set for one of the largest mergers of all time. While they seem to be passing all of the hurdles at a national level, several states are still unsure that the multi-billion dollar deal is good for consumers — and for businesses. Since T-Mobile and Sprint control up to 50% of the pre-paid cell phone market, chances are good that this potential merger could cause prices to rise due to the strength of the combined company. While there may be a total of four competitors in the market, is this enough to keep prepaid cellular costs from skyrocketing?

State Attorney Generals Suing to Stop the Merger

AGs from more than a dozen states are arguing to stop the $26.5 billion merger, mostly due to concerns around the lack of competition in the marketplace and the potential of rate hikes. The key impact on business could be the growth of the 5G network, a next-generation technology that could help provide better service to rural customers who currently don’t have access to this speed in their telecommunications. With business users being heavy consumers of telephony, there is a potential expense impact to organizations that are currently working through budgets for the next year. There are a few states that have already settled their case surrounding the merger, but several more vow to take the case all the way to court. “We intend to be prepared to go to trial to fight for a fair, competitive, and equitable marketplace for consumers nationwide,” notes California Attorney General Xavier Becerra.

T-Mobile Vows to Expand 5G and Lock Prices

One of the key concerns by businesses and consumers alike is the potential for a rate hike when the two behemoths merge. The new entity will retain the name T-Mobile and their leadership structure, with T-Mobile’s leaders assuring Americans that prices will remain locked in for at least three years. However, pulling the two organizations together may provide an unexpected boon for business professionals — access to speedier 5G networks in more remote parts of the country. This is particularly important as remote work becomes a vital recruitment tool for businesses.

Want to review the competitiveness of your current telecommunications strategy? Contact the professionals at Alvarez Technology Group today at (831) 753-7677 or request a free initial consultation online. Our teams work with organizations of all sizes to ensure that your business systems, telephony, security and compliance practices are in line with the latest technology. You might be surprised to learn that you could reduce your overall technology cost through proactive support recommendations that help boost productivity and effectiveness of your business infrastructure.