A combined T-Mobile and Sprint would build a new customer experience center in New York that could spur hundreds of new jobs, the companies said on Tuesday, the latest move to pushback against critics who argue their pending $26.5 billion merger would lead to workforce cuts.
Continue Reading Below
The facility, set to be built in Henrietta, New York, promises to create up to 1,600 positions and is contingent on the Trump administration signing off on the deal. On top of the potential for new jobs, T-Mobile and Sprint say a combination is necessary in order to effectively compete against Verizon and AT&T in the race to deploy fifth-generation wireless technology.
Gov. Andrew Cuomo, a Democrat, said the announcement “demonstrates once again that New York State is open for business,” a claim that comes after Amazon opted to nullify its agreement to build a second headquarters in New York City amid local opposition to the lucrative incentive package the e-commerce giant would have received.
T-Mobile previously announced new service centers in Fresno County, California, and Overland Park, Kansas, spurring as much as 5,000 new jobs by 2021, according to the Bellevue, Washington-based company. The firms say a combined entity will have 7,500 more customer care employees than they would have as standalone organizations.
“From day one, Sprint and T-Mobile will employ more people in the U.S. than both companies would separately. Other investments include building out a state-of-the-art, nationwide 5G network, delivering more competition and new choice to customers like broadband, and opening new stores to an expanding customer base,” they said in a statement.
|TMUS||T-MOBILE US INC||80.01||+0.27||+0.34%|
Critics continue to lambast the merger as one that would lead to higher costs to consumers, particularly in rural areas, and job cuts for workers.
The T-Mobile-Sprint deal is currently under review by the Department of Justice and the Federal Communications Commission, though the DOJ is reportedly inclined to oppose it.
Alongside the argument that a combined entity would be better equipped to roll out a national 5G network, Sprint says it would have no ability to continue to operate in the U.S. wireless market if the merger is not approved.