Los Angeles Times

T-Mobile backs off vow

The carrier wants out of a pledge to create 1,000 California jobs in exchange for an OK on its Sprint purchase.

- Bloomberg

Less than three months into the life of the “new” TMobile US Inc., the self-proclaimed maverick mobilephon­e carrier is already asking to roll back commitment­s it made in exchange for approval to buy its smaller rival Sprint Corp.

T-Mobile — now the second-largest U.S. wireless carrier because of the April 1 merger — is asking California’s Public Utilities Commission for a waiver of job mandates and network-speed milestones.

Although T-Mobile promised to create 1,000 fulltime jobs in California, the company said Tuesday that the state can’t dictate hiring. The COVID-19 crisis “makes the imposition of a mandate to create additional jobs infeasible and unwarrante­d,” it said in a filing with the commission.

And instead of delivering wireless-connection speeds of 300 megabits a second to 93% of the state in four years, the company said that the documents should have said six years.

“We appreciate the willingnes­s of the commission’s staff and the commission­ers to work with us to resolve our outstandin­g concerns and clarificat­ions,” T-Mobile said in a statement.

As the lone holdout among the states, California granted conditiona­l approval of the merger in mid-April, two weeks after the merger took place.

The enlarged T-Mobile is off to a rocky start.

Last week, as many as 68 million customers were hit with a daylong service outage, which drew a federal investigat­ion. That same week, it pulled the plug on its T-Mobile TV venture, writing down $218 million in costs.

T-Mobile also recently started shuffling its retail stores.

Thousands of Metro and Sprint store employees are being displaced as they face the prospect of searching for different jobs at T-Mobile or leaving the company.

That’s a different picture than the one then-Chief Executive John Legere presented when he announced the merger two years ago, touting the pact’s jobgrowth potential.

“We will be adding thousands of new jobs early on, and I can easily envision this leading to tens of thousands over time,” he said. Legere left his job in April.

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