T-Mobile asks CPUC for permission to employ fewer people in California

by Steve Blum • , , , ,

Sprint store

T-Mobile wants the California Public Utilities Commission to dial back some of the obligations it imposed when it approved the Sprint merger in April. A “petition for modification” of the CPUC’s decision asks for three changes:

  • Strike the order to add 1,000 new jobs in California. As it has consistently argued, T-Mobile says the CPUC doesn’t have that authority. Meanwhile, T-Mobile is offering hundreds of former Sprint employees the, um, opportunity to “consider a career change”.
  • Push back a deadline for “providing average speeds of 300 Mbps to 93% of California” by two years, to 2026. T-Mobile seems to think there was a misunderstanding. It says the clock on its voluntary commitment to reach that service level started running when the merger closed, not when it was first proposed in 2018.
  • Trust the Federal Communications Commission and the California Emerging Technology Fund, which is now on T-Mobile’s payroll to the tune of $7 million a year, to verify 5G coverage and speed promises. As it stands, T-Mobile has to prove its claims using the CPUC’s independent Calspeed testing program.

The modification request won’t have much, if any, of a direct effect on the CPUC’s decision allowing the Sprint merger and the long list of conditions it attached. The request for extra time to meet the 300 Mbps download benchmark might get some consideration, but T-Mobile’s appeal doesn’t say anything new about the requirements to add 1,000 jobs in California and to do speed testing the CPUC’s way.

The deal’s opponents will respond, of course, and the commission will take up T-Mobile’s petition and opponents pending request for a rehearing eventually. Minor tweaks aside, both are likely to be rejected. At that point, the CPUC’s lengthy – two years and counting – process will be complete, which clears the path to court challenges, at the state and federal level. That’s where the real action will happen.