T-Mobile Still Pretending That Staying At Trump's DC Hotel Isn't An Obvious Ploy To Gain Merger Approval

from the nothing-to-see-here dept

In a letter responding to Congressional inquiry, T-Mobile has confirmed that the company dramatically ramped up its patronage of Trump's hotel in DC as it sought regulatory approval of its $26 billion merger with Sprint. A copy of the letter, obtained by the Washington Post, makes it clear that the company spent upwards of $195,000 at the property since it originally announced the telecom industry's latest megadeal last April. That was a dramatic shift from the period of time before the deal was announced:

"T-Mobile’s patronage of President Trump’s Washington hotel increased sharply after the announcement of its merger with its Sprint last April, with executives spending about $195,000 at the property since then, the company told congressional Democrats in a letter last month. Before news of the megadeal between rival companies broke on April 29, 2018, the company said, only two top officials from T-Mobile had ever stayed at Trump’s hotel, with one overnight stay each in August 2017.

T-Mobile has also hired former Trump ally Corey Lewandowski and former FCC Commissioners Robert McDowell and Mignon Clyburn to "consult" on the deal and grease the wheels of approval. T-Mobile CEO John Legere has consistently tried to play this obvious attempt at pandering to Trump as just unrelated happenstance:

Amusingly, Legere built his entire brand on being a "no bullshit" alternative to AT&T and Verizon. Yet here we are.

As Legere has attempted to sell the press, public, and regulators on the deal, he's adopted many of his competitors' worst habits. It's been clearly documented in countries like Canada or Ireland that when you reduce the total number of major wireless competitors from four to three, it results in dramatically higher rates as the incentive to compete on price is proportionally reduced. Such telecom mergers almost always result in significant layoffs as redundant positions are eliminated. Wall Street predicts T-Mobile's merger will be no different, eliminating anywhere between 10,000 and 30,000 jobs.

This is not alien territory. In US telecom, these megadeals almost uniformly make the sector worse, as your wallet can attest. Yet both Sprint and T-Mobile execs have engaged in the same old game of Charlie Brown and Lucy football, breathlessly insisting that this deal will somehow be different. At the same time, execs continue to pretend that kissing Trump's ass by staying at his DC hotel isn't an obvious lobbying strategy for the company:

"While we understand that staying at Trump properties might be viewed positively by some and negatively by others, we are confident that the relevant agencies address the questions before them on the merits," (T-Mobile) wrote.

That makes one of you. The Trump FCC has been a glorified rubber stamp for absolutely every pipe dream telecom lobbyists can cook up, be it killing popular net neutrality rules (something Legere supported) or literally weakening the definition of the word "competitive" to make life easier on the sector's biggest players. While the DOJ is less certain (though still sounding likely from what I've heard), there's zero doubt that the FCC will rubber stamp this merger, likely piggybacking on T-Mobile's (false) tailor-made claims that the deal is essential if the United States doesn't want to "fall behind" in the "race to 5G."

Once Legere gets done bullshitting his way to merger approval, he'll have to quickly pivot back again to pretending he's the "no bullshit" alternative to the other major wireless carriers. But of course as just one of three remaining competitors, history has shown us time and time again how T-Mobile will have less incentive than ever to seriously compete on price, and will, sooner or later, come to resemble AT&T and Verizon in all the wrong ways.

Filed Under: donald trump, john legere, lobbying, merger, trump hotel, washington dc
Companies: sprint, t-mobile


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  1. identicon
    Anonymous Coward, 7 Mar 2019 @ 8:48pm

    Any good capitalist..

    will tell you that sometimes you have to be willing to "invest".

    reply to this | link to this | view in thread ]

  2. icon
    Gary (profile), 7 Mar 2019 @ 8:55pm

    Re: Any good capitalist..

    Invest early, invest often. The Cheeto knows who bribes him and who reports his falsehoods.

    reply to this | link to this | view in thread ]

  3. identicon
    Anonymous Coward, 7 Mar 2019 @ 9:21pm

    Re: Any good capitalist..

    "will tell you that sometimes you have to be willing to "invest"."

    I think the modern term is "blow job".

    reply to this | link to this | view in thread ]

  4. icon
    That One Guy (profile), 8 Mar 2019 @ 12:04am

    What's the problem?

    I mean I thought everyone knew that there was only one hotel in DC, Trump's.

    Clearly they aren't doing this in a blatantly obvious attempt to pander to Trump's ego and greed by staying at his hotel and spending just under $200 thousand at it while they wait, rather they are doing it because they simply had no other choice if they wanted to stay in DC. They either stayed at his hotel or didn't stay in DC at all, so it's not like you can blame them for doing so.

    reply to this | link to this | view in thread ]

  5. icon
    JoeDetroit (profile), 8 Mar 2019 @ 5:40am

    At 72 years old, why not divest?

    Seriously, the old guy is OLD. Why would he not completely divest in all is businesses? It shows low intelligence or downright stupidity to not do that & remove it as an appearance of influence. It's not like he can direct his "empire" from the afterlife.

    reply to this | link to this | view in thread ]

  6. identicon
    Anonymous Coward, 8 Mar 2019 @ 7:56am

    Re: At 72 years old, why not divest?

    He thinks that he can do whatever he pleases all the while telling the world a completely different story and they are supposed to swallow it whole with not aftertaste because he thinks he is king.

    reply to this | link to this | view in thread ]

  7. identicon
    Anonymous Coward, 8 Mar 2019 @ 8:03am

    "Amusingly, Legere built his entire brand on being a "no bullshit" alternative to AT&T and Verizon. Yet here we are."

    So the alternative he is offering is horseshit then?

    reply to this | link to this | view in thread ]

  8. identicon
    Glen, 8 Mar 2019 @ 8:27am

    Re: At 72 years old, why not divest?

    I just checked. He is 60 years old and still attempting to go full on dudebro? I'm 50 and I won't do that.

    reply to this | link to this | view in thread ]

  9. icon
    JoeCool (profile), 8 Mar 2019 @ 8:37am

    Re: Re: At 72 years old, why not divest?

    He was referring to Trump, not Legere.

    reply to this | link to this | view in thread ]

  10. identicon
    Anonymous Coward, 8 Mar 2019 @ 9:06am

    Re: What's the problem?

    "Trump was the only hotel to survive the Franchise Wars. Now all hotels are Trump."

    reply to this | link to this | view in thread ]

  11. icon
    Ed (profile), 8 Mar 2019 @ 9:15am

    Legere is Trump-Lite

    He's just as much a conman as Trump. Legere's folksy schtick is just an act, behind the scenes he is pure tyrant and he knows full-well this merger won't benefit anyone but the shareholders and him, certainly not consumers.

    reply to this | link to this | view in thread ]

  12. identicon
    Anonymous Coward, 8 Mar 2019 @ 4:32pm

    Re: At 72 years old, why not divest?

    It shows low intelligence or downright stupidity to not do that & remove it as an appearance of influence.

    Trump feeds on publicity. Doesn't matter whether it's good or bad. Anyway, why's it unintelligent to keep doing something that's profitable and he's able to get away with? What would he gain by divesting?

    reply to this | link to this | view in thread ]


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