T-Mobile-Sprint Trial: A Debate About Phone Bills

Whether Americans will pay more for cellphone service is at the center of arguments made by both sides battling last week over T-Mobile's purchase of Sprint. The coalition of state attorneys general that filed the antitrust lawsuit challenging the $26 billion merger fear consumers will pay more if the No. 3 and No. 4 U.S. carriers by subscribers combine, and that wireless industry competition will suffer. Plaintiffs’ lawyers said in court that even though T-Mobile promised not to raise the price of its rate plans for three years after the deal, it could pull back on device-related promotions. T-Mobile executives, meanwhile, testified that they would lower prices and better challenge larger rivals if the deal is approved. They said T-Mobile may have to raise prices if the transaction doesn’t happen, a situation that Chief Executive John Legere called a “worst nightmare.”