Why T-Mobile (TMUS) Is Up Today

NEW YORK (TheStreet) -- Softbank CEO Masayoshi Son is making the rounds in Washington today, indirectly making his case for a long-rumored merger with T-Mobile  (TMUS).

Softbank owns 80% of Sprint  (S).

Son has promised a price war if the merger is allowed to go through.

T-Mobile has experienced a resurrection of sorts after waging its own price war against the top three U.S. mobile carriers by offering low-cost no contract plans to its customers and even offering a deal to pay contract termination fees for consumers who want to switch to T-Mobile service plans.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

These moves have prompted industry leader AT&T  (T) to respond by abandoning its premium pricing strategy in favor of low-cost no-contract plans similar to T-Mobile's.

Son insists that the only way to increase competition in the U.S. market, and therefore lower prices, is by allowing third-place Sprint to merge with fourth-place T-Mobile in an effort to place more competitive bids at broadband spectrum auctions

T-Mobile was up 2.8% in afternoon trading to $31.83.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

If you liked this article you might like

Bitcoin Today: Bitcoin Flirts With $9,000 as Crypto Market Holds Tight to Gains

Bitcoin Today: Bitcoin Flirts With $9,000 as Crypto Market Holds Tight to Gains

Cramer: 10 Stock Surprises

Cramer: 10 Stock Surprises

Broadcom Builds War Chest as Qualcomm Takeover Battle Continues

Broadcom Builds War Chest as Qualcomm Takeover Battle Continues

Initial Public Offerings Remain On Ice Amid Market Volatility

Initial Public Offerings Remain On Ice Amid Market Volatility

Video: T-Mobile CEO John Legere Won't Rule Out a Content Acquisition

Video: T-Mobile CEO John Legere Won't Rule Out a Content Acquisition