Saturday, December 31, 2016

Trump’s jobs announcement is false. Sprint wins, and Americans lose.

On Wednesday, President-elect Donald Trump made a huge announcement: because of his presidency, Sprint has decided to bring back or create 5,000 jobs in the United States, while satellite startup OneWeb will create another 3,000.
The claim, however, was false. Those jobs are part of a $50 billion investment from SoftBank, which owns 80 percent of Sprint and has made a large investment in OneWeb, that was previously announced as part of a deal with a Saudi investment fund before Trump won the presidency. Meanwhile, not all of the jobs promised by Sprint will be at the company itself, but instead at contractors.
But it’s in both the company’s interests and Trump’s to create glowing, if misleading, headlines about cooperation between the administration and the corporation.
For Sprint, cozying up to Trump is almost certainly related to the hope that it can get approval of its previously failed attempt to merge with T-Mobile. Sprint was in the process of making a bid to buy T-Mobile in 2014, and thus combining the third and fourth largest wireless carriers in the country, but ended up abandoning the plan in the face of regulatory opposition from the Department of Justice (DOJ) and the Federal Communications Commission (FCC). Both agencies have stated an intent to keep four major carriers in the country, rather than let them combine, under current leadership. Read full story here 

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