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Former Boost Mobile CEO Has Concerns About Sprint/T-Mobile Merger

Former Boost Mobile CEO and founder Peter Adderton has now called out what seems to be a glaring omission from the two companies’ proposed merger filing with the FCC.  That’s because according to Adderton and at least one research analyst, Blair Levin, neither company has addressed what will happen with their prepaid subsidiaries or the mobile virtual network operators (MVNOs) which make use of their networks. Adderton, for his part, has gone so far as to release no fewer than four press releases in the wake of the filing in order to express his concerns. T-Mobile, the former executive points out, currently serves more than 30 million prepaid subscribers. The MVNOs which are listed in the document generally includes large corporations such as Comcast, Google, and Charter. Those are listed as competing services to the proposed New T-Mobile, rather than as service providers which would ultimately license the new company’s network.

Adderton says that the lack of mention for prepaid services is made in its proposal, despite that many of those consumers are presumably low-income or credit-challenged, is cause for worry. To the contrary, he continues, the report brings up the topic of 5G no fewer than 1,797 times despite the fact that the network isn’t expected to be up and running for most customers until well after 2019. Beyond that, there is a general lack of discussion regarding independent wireless dealers associated with the two companies. Approximately 300 of those are in operation, Addleton argues, and no mention is made about how those operations will be affected by a merger between the two carriers.

Taking his stance just a bit further, the former executive is actively seeking a response from members of the U.S. legislative branch, asking Senators from several states to press the companies about their plans. Furthermore, Addleton is proposing that stipulations be included in any merger approval which would require the companies to address those concerns via protections for both prepaid customers, MVNOs, and independent wireless dealers. Failing that, Addleton has vowed to put forward his own acquisition proposals of any MVNO or prepaid brand that may be adversely affected by the impending merger between Sprint and T-Mobile.