Press Release
AG Ellison wins protections for Minnesota consumers and jobs in T-Mobile settlement
Protects current rate plans, requires low-cost wireless plans, extends low-income wireless access, protects jobs
March 11, 2020 (SAINT PAUL) — Minnesota Attorney General Keith Ellison today announced that his office has settled his and other states’ lawsuit against T-Mobile, resolving the state’s legal challenge to the wireless company’s proposed merger with Sprint. The terms of the settlement ensure that Minnesotans will be protected from many of the harms that historically result from large corporate mergers. The settlement will protect current smartphone rate plans, requires T-Mobile to offer low-cost wireless plans, extends wireless access to low-income families, and protects current Sprint and T-Mobile retail employees from layoffs.
The settlement ends the court case that Attorney General Ellison and a coalition of attorneys general brought against the T-Mobile/Sprint merger in June 2019. In that suit, the coalition argued that the merger should be blocked because it would lead to increased prices and decreased competition. Minnesota and the other states will not appeal a lower-court decision from February 2020, which ruled that the merger can proceed.
“We sued to stop the T-Mobile/Sprint megamerger because if we hadn’t, it would have let wireless companies charge consumers more, compete with each other less, and lay off employees. In an economy that already doesn’t work for too many working people, this merger would have made it even harder for them to afford their lives,” Attorney General Ellison said.
“We had a strong case but a judge ruled against us and we weren’t likely to win on appeal. In these circumstances, we won a good settlement today that will preserve jobs, extend broadband internet access to low-income families, and help Minnesotans afford their cell phone bills for years to come. Although we won’t appeal the lower-court ruling, when I see anticompetitive behavior that makes it harder for Minnesotans to afford their lives, I’ll use all the tools I have to fight it,” he continued.
The terms of the settlement require the merged company to do the following:
- Make low-cost plans available in Minnesota for at least five years. This includes a plan offering unlimited talk and text plus 2 GB of high-speed data at $15 per month, and a plan offering 5 GB of high speed data at $25 per month.
- Offer the same or better smartphone rate plans as T-Mobile and Sprint plans offered in February 2019 , for at least five years.
- Offer 100 GB of no-cost broadband internet service per year for five years and a free mobile Wi-Fi hotspot device to 10 million qualifying low-income households that are not currently connected to broadband nationwide, as well as the option for each qualifying household to purchase select Wi-Fi-enabled tablets at the company’s cost.
- Protect Minnesota jobs by offering all Minnesota T-Mobile and Sprint retail employees in good standing an offer of substantially similar employment.
- Increase the participation rate in its employee Diversity and Inclusion program to 60 percent within three years.
The other states that Minnesota joined in the T-Mobile/Sprint lawsuit that settled today are California, Connecticut, Hawaii, Illinois, Maryland, Massachusetts, Michigan, Oregon, Pennsylvania, Virginia, Wisconsin, and the District of Columbia.
