T-Mobile faces new FCC questions over Mint purchase

The FCC is probing into T-Mobile's proposed $1.3 billion purchase of Mint Mobile, which is fronted by actor Ryan Reynolds. The agency asked a range of questions about cybersecurity, distribution and public-interest benefits.

Mike Dano, Editorial Director, 5G & Mobile Strategies

October 27, 2023

3 Min Read
T-Mobile store with people lined up outside
(Source: T-Mobile)

The FCC fired off a battery of questions at T-Mobile on Friday regarding the company's proposed purchase of MVNO Mint Mobile, fronted by actor Ryan Reynolds.

The questions run the gamut, touching on topics including cybersecurity, distribution and public-interest benefits.

"For each claimed post-transaction benefit identified, state the steps that T-Mobile anticipates taking to achieve the benefit and the estimated time and costs required to achieve such benefit," reads one question.

Another: "Discuss in detail all of T-Mobile's current and anticipated future plans regarding the Mint Mobile and Ultra Mobile distribution networks, including, but not limited to, the extent to which Mint Mobile and Ultra Mobile plans and devices would be available at third-party locations, such as Walmart. Explain in detail whether Mint Mobile and Ultra Mobile plans and devices will be offered in T-Mobile's stores post-transaction."

A number of inquiries also center on the type of data T-Mobile collects on its customers, and how it might secure that data.

T-Mobile announced in March its $1.3 billion plan to acquire Ka'ena Corporation and its subsidiaries: Mint Mobile, Ultra Mobile and Plum, a wholesaler. According to the financial analysts at Wells Fargo, Mint counts around 3 million customers. Reynolds pledged to continue to advertise for Mint and other T-Mobile offerings, following the close of the merger. T-Mobile said it hoped to close its purchase of Mint by the end of 2023.

Related:T-Mobile pays a premium for Ryan Reynolds' mobile customers

Why it's important

T-Mobile is hoping to use the purchase of Mint to improve its standing in the prepaid market. Currently the company counts around 21.6 million prepaid customers, mostly on its Metro by T-Mobile brand.

T-Mobile's purchase of Mint follows several similar deals in the space, including Verizon's $7 billion purchase of TracFone that closed in 2021, and Dish Network's $1.4 billion purchase of Boost from T-Mobile in 2020.

But T-Mobile's move on Mint is happening in a new regulatory environment. FCC Chairwoman Jessica Rosenworcel is now moving forward on a number of regulatory agenda items – including reinstating net neutrality – after Democrats gained a majority on the five-commissioner agency.

Thus, it's possible that T-Mobile could face additional regulatory scrutiny at the FCC.

Moreover, T-Mobile may face challenges at the political level in general after scoring approvals to purchase Sprint without any major divestitures or conditions. The company recently engaged in a major round of layoffs – which some lampooned considering T-Mobile executives during the Sprint merger proceeding promised the two companies would employ more workers combined than as separate companies.

T-Mobile has also suffered several security breaches, and recently walked back plans to raise prices for some customers.

About the Author

Mike Dano

Editorial Director, 5G & Mobile Strategies, Light Reading

Mike Dano is Light Reading's Editorial Director, 5G & Mobile Strategies. Mike can be reached at [email protected], @mikeddano or on LinkedIn.

Based in Denver, Mike has covered the wireless industry as a journalist for almost two decades, first at RCR Wireless News and then at FierceWireless and recalls once writing a story about the transition from black and white to color screens on cell phones.

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