A new lawsuit was filed against T-Mobile this week by a group of wireless carriers. fierce wireless I saw copies of the costumes. Absolute Wireless (South Carolina), Maycom (Florida), Solution Center (Connecticut), and Wireless Express (Tennessee) allege that the T-Mobile merger caused these agencies to close because the merger transformed Sprint stores into T-Mobile stores, or downright closed.
According to the Absolute Wireless and Solutions Center, T-Mobile only wanted to retain Sprint customers and its network, but generally did not want to keep Sprint resellers. According to Absolute Wireless’s lawsuit, T-Mobile “forced Absolute Wireless and other retailers to relinquish existing Sprint contracts, which had years on their terms and were more favorable than T-Mobile’s.”
According to the Solution Center lawsuit, company owner Mark Hudson was a seller of Nextel and ended up opening the Solution Center after the Sprint/Nextel merger. It eventually grew to 28 stores in four states with more than 200 employees. The merger apparently resulted in more than $25 million in compensation for the Solutions Center.
Maycom has been in business for 24 years and has been one of the largest Sprint dealers. The complaint states, “Within months, T-Mobile illegally destroyed Macyom’s business.” “When the dust settled, of the 63 stores Maycom once owned, only 28 were left for sale that T-Mobile had set up, 4 had a limited one-year lease renewal to operate, and T-Mobile closed 31 stores.”
At the start of the merger, there were more than 9,000 Sprint and T-Mobile stores, according to Jeff Moore of Wave7 بحث search. Moore says the number of stores is now less than 7,000. Meanwhile, Metro stores have also shrunk from more than 9,000 to well below 8,000.
Deals that were made by dealers were likely with Sprint, so once the T-Mobile merger happened and Sprint’s name went out the window, the deals might have been rejected as well.
Sprint CEO Marcelo Clore and T-Mobile CEO John Legere at the carrier’s merger announcement in April 2018.
It’s unfortunate that the merger led to store closures and employee job losses, but this outcome was inevitable. Even the Justice Department warned during hearings and deliberations that hundreds of retail stores would close, except for the number was in the thousands according to Moore. There is no way that a merger of this magnitude would be a win-win situation for all parties involved. As the Americans say: “It’s just work.”
