Why regulators should approve the T-Mobile/Sprint Deal

“On the heels of the T-Mobile/Sprint merger announcement (Round 3), the market has been pessimistic, with consensus on the Street that chances of approval stands at less than 50%,” Mark Lowenstein writes for Tech.pinions.

 
“I disagree,” Lowenstein writes. “If T-Mobile and Sprint play their cards right, the chances of getting the deal through this time ‘round are much better. Here are some of the main points I believe regulators should consider.

 
1. The Market Has Changed.
2. Why the Focus on Wireless When It’s Broadband That Needs More Competition?
3. What Would Have Become of Sprint?
4. This is good for 5G.
5. This Is Partially The Fault Of Our Existing Spectrum Policy.
6. Perhaps Some Creative Concessions Would Be In Order.

“There are valid arguments on both sides of this one, from a regulatory perspective,” Lowenstein writes. “But given important changes in the market’s structure, plus the road ahead from a strategic and financial perspective, the benefits of this proposed combination outweigh the potential downsides.”

Each of the six points are covered in the full article here.

MacDailyNews Take: Third time’s the charm?

T-Mobile and Sprint would do well to continue emphasizing how the merger could add U.S. jobs. If the merger goes through, the new T-Mobile plans to invest up to $40 billion in its new network and business in the first three years alone, a massive capital outlay that T-Mobile and Sprint say will fuel job growth at the new company and across related sectors. An investment of that size would be 46% more than T-Mobile and Sprint spent combined in the past three years.

More jobs = regulatory approval.

SEE ALSO:
T-Mobile and Sprint merge in $146 billion deal expected to drive significant U.S. job growth – April 30, 2018

9 Comments

    1. Totally agree. Approve it and allow for real competition with AT&T and Verizon from a more similar-sized company that will operate like a start-up (Legere as leader). Absolutely needed today, especially given the cost to roll out 5G.

      The only reason to deny this merger is to placate the two majors. T-Mobile and Sprint as separate companies would likely wither and die away as 5G rolls out without the merger. This agreement should be blessed.

  1. Unfettered multinational corporate power is making everything great again, suuuuuuuure.

    1. “The Market Has Changed”
    BS. Since the undustry consolidated into 4 nationwide carriers, nothing has changed. Corporatists are rushing to push for mergers now because they know the current administration is easily corrupted. They are offering absolutely no consumer benefits as a result of this proposed merger.

    2. “Why the Focus on Wireless When It’s Broadband That Needs More Competition?”
    Why can’t the FCC do both? Oh that’s right – corrupt administration hellbent on letting corporations do whatever they want, pollution corruption and consumer harm is to be ignored.

    3. “What Would Have Become of Sprint?”
    They would have to provide better products and services or better pricing. Perhaps they would have to adopt industry standards or sell better quality handsets. Oh, the horror. They would have to work to earn their keep.

    4. “This is good for 5G.”
    This has absolutely nothing to do with the 5G unicorn being hyped today. Both Sprint and T-Mobile testified to that months ago.

    5. “This Is Partially The Fault Of Our Existing Spectrum Policy.”
    The story changes by the minute. Once it was claimed that digital technologies reduced the width of spectrum that certain communications needed. Now corporatists want to use more of the public’s spectrum without paying what it is worth (which would be the cost of decommissioning all the stuff that uses the bandwidth previously allocated). There is a process for this, and it is not to greenlight corporate takeover of public domain. But what has the FCC been doing? The current corrupt administration has been prioritizing deregulation and attempted elimination of net neutrality instead of executing wise citizen-respecting policy established under the prior administration or public auctions of the frequency spectrum.

    6. “Perhaps Some Creative Concessions Would Be In Order.”
    This sounds eerily like letting the gold holders make all the rules. Or worse, eliminating all industry rules in favor of a dictatorial process. This is the current corrupt administration’s approach on everything. Do you make or use steel? Well then you have to kiss the ring of the little emperor so he can decide on an exemption to his asinine market-manipulating trade policies. Now he wants to pick and choose winners in telecom. This is not laissez faire, nor is it wise fair regulation. This is a banana republic strongman dictator tactic.

    When you can identify an upside for the consumer in further industry consolidation, then maybe it’d be worth considering. So far nothing beneficial to the consumer has been offered.

  2. Merged companies always get rid of jobs but now things are different with the rise of robots. Pretty soon corporations will begin demanding welfare financed by taxpayer dollars for robot R&D and upkeep. They will justify it by saying that robots should not be used as an excuse to penalize the company by shutting off the welfare spigot from big gubmnt.

  3. Darn. I was hoping on Sprint’s bankruptcy and permanent demise. Oh well. I hope the new merged company tosses out the ‘Sprint’ name. That at least would be a modicum of justice, IMHO of course. It’s already a meagre joy to know Sprint’s CEO ist kapput.

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