The New T-Mobile and cable operators expected to charge $80/mo. for their yet-to-be-built 5G broadband access
LOS ANGELES, July 16, 2018 (GLOBE NEWSWIRE) — Peter Adderton, founder and former CEO of Boost Mobile USA, today announced his commitment to roll out robust and highly affordable prepaid broadband wireless data plans in select lower income metro areas across the country in the wake of a Sprint/T-Mobile merger scenario. His commitment is contingent upon the FCC and DOJ mandating that the companies divest certain prepaid assets as a condition of approving the merger. Adderton remains deeply concerned that the merger, as proposed, will ultimately result in the consolidation of Boost Mobile, Virgin Mobile USA and MetroPCS into a single brand, effectively eliminating two aggressive challenger brands in the prepaid sector.
“We are prepared to commit to the rapid build-out of a high-density, 4G LTE small cell network infrastructure in select urban markets to serve the broadband needs of this country’s millions of lower income, credit-challenged and/or minority prepaid wireless consumers,” said Adderton. “I can’t emphasize enough how important affordable broadband is for these consumers. The vast majority of prepaid customers don’t have a 60-inch LCD TV for their news and entertainment. Their phone is their lifeline to things like news, healthcare, jobs and entertainment, and they simply can’t afford the $80/month broadband plans that cable companies sell and The New T-Mobile will be offering them post-merger.”
In a September 2017 report by the Brookings Institute titled Signs of Digital Distress: Mapping Broadband Availability and Subscription in American Neighborhoods, the authors state that “The internet is a way for people in poorer or far-flung communities to connect with social programs and educational opportunities, such as employment and health services, to which they might not otherwise have access. But residents in low-income or rural neighborhoods are the least likely to have broadband subscriptions. In 2015, nearly a quarter of Americans lived in low-subscription neighborhoods, meaning that fewer than 40 percent of households in the area had a broadband connection. The 17.7 million children who live in low-subscription neighborhoods are particularly impacted by this dearth. As schoolwork becomes increasingly digital, a lack of broadband access makes it difficult for kids to complete homework assignments and research projects.”
Adderton is also committed to offering exclusive distribution of his proposed new data plans through Boost Mobile independent wireless dealers. “Unlimited fixed wireless broadband service at $9.95 per month is going to be a hot commodity, and who better to sell it than the independent Boost dealers who have been committed to this market and these prepaid customers for many years,” stated Adderton. “It’s a powerful new service in their portfolio that doesn’t require their customers to front the high costs of adding lines, expensive add-on handsets and networking gear. Furthermore, we will make our fixed wireless broadband network available to small MVNOs on a wholesale basis to resell at attractive margins, which will be welcome news among the hundreds of these operators who typically operate on razor thin margins.”
“Sprint and T-Mobile execs seem laser focused on their future 5G network buildout, which will not be affordable or available to prepaid customers for years,” continued Adderton. “I’ve been very consistent in calling on the FCC and the DOJ to mandate a divestiture of Boost Mobile and its roughly 15 million prepaid customers as a condition of the merger. I am also calling on them to require divestiture of sufficient spectrum assets to support those low income prepaid consumers who don’t have access to broadband fixed networks, so that a Boost Mobile spinout will have the scale and assets needed to compete and maintain a healthy competitive environment in the prepaid sector. If those conditions are mandated and I am the winning bidder for the assets, I am committed to the buildout of a high-quality 4G fixed wireless broadband network with an unlimited data plan for $9.95 per month. Compared to the $80/month proposition they’ll get from the cable operators and The New T-Mobile’s yet-to-be-built 5G network, that’s a price that the majority of prepaid subscribers can afford in order to keep their family connected to today’s digital economy.”
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