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T-Mobile’s 3 Years With Sprint: What’s Changed Since the Merger

T-Mobile has expanded its 5G network and kept plan and phone prices down, but other premerger pledges are still unfulfilled.

Three years ago, T-Mobile’s merger with Sprint was finalized, and the nation’s list of top carriers shrank from four to three. At the time, T-Mobile made promises that the merger would be positive for consumers and the larger mobile industry — and though that’s been more true than not, there are still some pledges that haven’t been seen through. 

But it also hasn’t led to a worse situation for consumers, at least not yet. Though having three major carriers to choose from instead of four is worrisome for the future (with Dish so far failing to pose a real challenge), competition has kept plan prices relatively stable and even led to big savings on top-tier phones. Carriers have continued to build out their respective 5G networks, leading to new 5G home internet options for people who aren’t connected to broadband (or are looking for an alternative to their traditional cable options). It isn’t the rosiest future, but it isn’t as bad as some critics had feared.

In an April 10 blog post, T-Mobile CEO Mike Sievert trumpeted how far the carrier has come in three years, citing everything from better 5G service to the greater availability of home internet to lower prices for all, even people signing up with other carriers.

Indeed, folding in Sprint’s midband 5G towers has given T-Mobile a lead on 5G, letting it achieve nationwide coverage of more than 200 million Americans with faster 5G in 2021, years ahead of both Verizon and AT&T. T-Mobile has also improved 5G access for rural customers, Sievert said.

T-Mobile piggybacked off its larger 5G network to launch and grow its 5G home internet service. For a $50 monthly subscription fee (if they set up automatic payments), the service offers customers higher-speed connectivity compared with dial-up, costly satellite, or underdeveloped DSL or cable alternatives. Though the speeds aren’t as fast or reliable as those of a good cable or fiber connection, T-Mobile’s 5G service can reach consumers who aren’t hooked up to the highest-speed internet networks.

And as Sievert notes, competition between carriers has kept prices on par — for instance, Verizon’s comparable 5G Home service also starts at $50 per month. 

Keeping phone plans low

As far as phone plan prices go, the carrier landscape after T-Mobile and Sprint’s merger has preserved competition in consumers’ favor, at least for the time being. Indeed, carrier discounts and deals have even led to a boom in premium phones, which climbed to up to 18% of the phone market early this year, according to IDC analyst Nabila Popal (up from 10% before the pandemic). Carriers have been desperate to get consumers signed to three-year contracts, so they’ve subsidized most or all of the price for phones like the iPhone 14 or Samsung Galaxy S23 series.

T-Mobile remains one the last of the big three providers to still offer two-year options on most of its devices, a more consumer-friendly deal. (A notable exception are pricey foldables like Samsung’s Galaxy Z Fold line, which requires a three-year commitment to get an upgrade discount.) That said, the carrier has tied some of its best perks and promotions — like free Apple TV Plus and its best device trade-in deals — to a requirement to be on its priciest Magenta Max plans. 

On the low end of the price spectrum, T-Mobile did fulfill a premerger promise to offer a $15 per month plan with unlimited talk and text as well as 2.5GB of data, which the carrier has since increased to 3.5GB in compliance with its proposal to increase this cheap plan’s data allowance by 500MB per year. It also has said it’ll keep Mint Mobile’s $15 per month plan should its planned $1.35 billion purchase of the Ryan Reynolds’ owned prepaid carrier go through.

Another major element in T-Mobile and Sprint’s merger proposal was offering low-cost or free data plans; discounted laptops and tablets; and mobile hotspot access to 10 million low-income households. What the carrier branded as Project 10 Million has so far followed through on providing $4.8 billion in services and supplying 5.3 million students with devices through the end of 2022, a T-Mobile spokesperson told CNET. 

The carrier hadn’t proposed a deadline for hitting the 10 million marker, but it said the program, which launched in 2020, would last five years, meaning it will expire in 2025. T-Mobile hasn’t said what’ll happen after its commitment period ends.

Merger misses: jobs fall short of promises

T-Mobile doesn’t seem to have fulfilled other pledges made for the merger. The biggest involves jobs, with then-CEO John Legere saying the new combined company would create new jobs and hire 11,000 more workers by 2024. The new T-Mobile started with around 80,000 employees in 2020, according to regulatory filings, but after losing around 5,000 employees in 2021 due to layoffs, along with more jobs shed among network and engineering as well as retail employees, the carrier so far seems to have fallen short of its promise. 

When reached for comment, T-Mobile pushed back on the idea that the carrier employs fewer people now than it did before the merger. But it didn’t share exact personnel numbers, saying only that thousands of jobs have been created. T-Mobile also didn’t address whether it’ll make the 11,000-person hiring goal set by Legere. 

«Before we merged with Sprint, we said we’d have more employees as a combined company than the two standalone companies would have had on their own without the merger — and we have done just that,» said a T-Mobile spokesperson. In the years since the merger, the spokesperson said, the carrier has also «created thousands of jobs for vendors and partners.»

Granted, the jobs-related proposal was made by a different CEO and before a pandemic led to layoffs and challenging economic conditions across many industries. But the current situation is still gloomier than T-Mobile had originally proposed.

The merger also shifted the balance of power among carriers. In their premerger assurances, T-Mobile and Sprint said they’d divest some of their assets to Dish, turning the satellite TV provider into the nation’s de facto fourth-largest carrier and saving the merger. Dish acquired Sprint’s prepaid mobile brand Boost and has the option to pay $3.59 billion for 800MHz wireless spectrum to form its own 5G network, though it may end up passing on the offer to save money after finishing testing the spectrum. In the meantime, Dish has secured agreements with AT&T and T-Mobile to use their 5G networks while it builds its own. 

Though Dish finally opened sign-ups for its 5G service back in August, and launched its own $25 prepaid service in December, progress has been slow to get the carrier in line with the far more established T-Mobile, Verizon and AT&T. For now, Dish isn’t a serious threat to its bigger siblings.

What comes after the merger timeline expires?

The US Department of Justice required a lot of assurances, like those listed above, to approve the T-Mobile and Sprint merger, but they all have expiration dates. This has implications for who’s helped by the new T-Mobile’s plans — like students aided by Project 10 Million, which lasts through 2025, as well as regular consumers through plan pricing.

As part of the merger, T-Mobile agreed to lock in pricing on its plans for three years, though it’s unclear what will happen after. Last year, the carrier introduced the similarly named Price Lock as a broad feature for most of its prepaid and postpaid mobile as well as broadband internet plans, but only new customers qualify. 

There are still a few other merger pledges stretching into the years to come. By the end of 2023, T-Mobile must provide 5G service to 97% of the population, and within six years 99%. The carrier must cover 85% of the rural American population by the end of this year, and 90% within six years. But beyond that, it’s unclear what T-Mobile has in store for consumers.

Technologies

Google races to put Gemini at the center of Android before Apple’s AI reboot

Google is using its latest Android rollout to position Gemini as the AI layer across phones, Chrome, laptops and cars.

Google is using its latest Android rollout to make Gemini less of a chatbot and more of an operating layer across the phone, browser, car and laptop, just weeks before Apple is expected to show its own Gemini-powered Apple Intelligence reboot at WWDC.
Ahead of its Google I/O developer conference next week, the company previewed a number of Android updates, including AI-powered app automation, a smarter version of Chrome on Android, new tools for creators, a redesigned Android Auto experience, and a sweeping set of new security features.
Alphabet is counting on Gemini to help Google compete directly with OpenAI and Anthropic in the market for artificial intelligence models and services, while also serving as the AI backbone across its expansive portfolio of products, including Android. Meanwhile, Gemini is powering part of Apple’s new AI strategy, giving Google a role in the iPhone maker’s reset even as it races to prove its own version of personal AI on the phone is further along.
Sameer Samat, who oversees Google’s Android ecosystem, told CNBC that Google is rebuilding parts of Android around Gemini Intelligence to help users complete everyday tasks more easily.
“We’re transitioning from an operating system to an intelligence system,” he said.
As part of Tuesday’s announcements. Google said Gemini Intelligence will be able to move across apps, understand what’s on the screen and complete tasks that would normally require a user to jump between multiple services. That means Android is moving beyond the traditional assistant model, where users ask a question and get an answer, and acting more like an agent.
For instance, Google says Gemini can pull relevant information from Gmail, build shopping carts and book reservations. Samat gave the example of asking Gemini to look at the guest list for a barbecue, build a menu, add ingredients to an Instacart list and return for approval before checkout.
A big concern surrounding agentic AI involves software taking action on a user’s behalf without permissions. Samat said Gemini will come back to the user before completing a transaction, adding, “the human is always in the loop.”
Four months after announcing its Gemini deal with Google, Apple is under pressure to show a more capable version of Apple Intelligence, which has been a relative laggard on the market. Apple has long framed privacy, hardware integration and control of the user experience as its advantages.
Google’s Android push is designed to show it can bring AI deeper into the device experience while still giving users control over what Gemini can see, where it can act and when it needs confirmation.
The app automation features will roll out in waves, starting with the latest Samsung Galaxy and Google Pixel phones this summer, before expanding across more Android devices, including watches, cars, glasses and laptops later this year.
The company is also redesigning Android Auto around Gemini, turning the car into another major surface for its assistant. Android Auto is in more than 250 million cars, and Google says the new release includes its biggest maps update in a decade and Gemini-powered help with tasks like ordering dinner while driving.
Alphabet’s AI strategy has been embraced by Wall Street, which has pushed the company’s stock price up more than 140% in the past year, compared to Apple’s roughly 40% gain. Investors now want to see how Gemini can become more central to the products people use every day.
WATCH: Alphabet briefly tops Nvidia after report of $200 billion Anthropic cloud deal

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Waymo recalls 3,800 robotaxis after glitch allowed some vehicles to ‘drive into standing water’

Waymo issued a voluntary recall of about 3,800 of its robotaxis to fix software issues that could allow them to drive into flooded roadways.

Waymo is recalling about 3,800 robotaxis in the U.S. to fix software issues that could allow them to “drive onto a flooded roadway,” according to a letter on the National Highway Traffic Safety Administration’s website.
The voluntary recall is for Waymo vehicles that use the company’s fifth and sixth generation automated driving systems (or ADS), the U.S. auto safety regulator said in the letter posted Tuesday.
Waymo autonomous vehicles in Austin, Texas, were seen on camera driving onto a flooded street and stalling, requiring other drivers to navigate around them. It’s the latest example of a safety-related issue for the Alphabet-owned AV unit that’s rapidly bolstering its fleet of vehicles and entering new U.S. markets.
Waymo has drawn criticism for its vehicles failing to yield to school buses in Austin, and for the performance of its vehicles during widespread power outages in San Francisco in December, when robotaxis halted in traffic, causing gridlock.
The company said in a statement on Tuesday that it’s “identified an area of improvement regarding untraversable flooded lanes specific to higher-speed roadways,” and opted to file a “voluntary software recall” with the NHTSA.
“Waymo provides over half a million trips every week in some of the most challenging driving environments across the U.S., and safety is our primary priority,” the company said.
Waymo added that it’s working on “additional software safeguards” and has put “mitigations” in place, limiting where its robotaxis operate during extreme weather, so that they avoid “areas where flash flooding might occur” in periods of intense rain.
WATCH: Waymo launches new autonomous system in Chinese-made vehicle

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Qualcomm tumbles 13% as semiconductor stocks retreat from historic AI-fueled surge

Semiconductor equities reversed sharply after a broad AI-driven advance, with Qualcomm suffering its worst day since 2020 amid inflation concerns and rising oil prices.

Semiconductor stocks fell sharply on Tuesday, reversing course after an extensive rally that had expanded the artificial intelligence investment theme well past Nvidia and driven the industry to unprecedented levels.

Qualcomm plunged 13% and was on track for its steepest single-day decline since 2020. Intel shed 8%, while On Semiconductor and Skyworks Solutions each lost more than 6%. The iShares Semiconductor ETF, which benchmarks the overall sector, fell 5%.

The sell-off came after a key gauge of consumer prices came in above forecasts, and as conflict in Iran pushed crude oil higher—prompting investors to shift away from riskier assets.

The preceding advance had widened the AI opportunity set beyond longtime industry leader Nvidia, which for much of the past several years had largely carried the market to new peaks on its own.

Explosive appetite for central processing units, along with the graphics processing units that power large language models, has sent chipmakers to all-time highs.

Market participants are wagering that the shift from AI model training to autonomous agents will lift demand for additional AI hardware. Among the beneficiaries are memory chip producers, which are raising prices as supply remains tight.

Micron Technology slid 6%, and Sandisk cratered 8%. Sandisk’s stock has surged more than six times over since January.

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