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.

Must Read: 
Warren Buffett's 10 Favorite Stocks

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.

More from Markets

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Global Rally Stalls as Trump Doubts North Korea Summit, Questions China Trade

Pound Slides as Inflation Slows, Doubts Grow Over Bank of England Rate Hikes

Pound Slides as Inflation Slows, Doubts Grow Over Bank of England Rate Hikes

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Lowe's Snags Ex-Home Depot Exec as CEO; ISPs Face Competitive Threat -- ICYMI

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Dow Slips 178 Points; S&P 500 and Nasdaq Also Decline

Legal Weed Sales in California Are Off to a Less Than Smokin' Start

Legal Weed Sales in California Are Off to a Less Than Smokin' Start