Abstract

http://ssrn.com/abstract=2045713
 


 



An Economic Analysis of the AT&T-T-Mobile USA Wireless Merger


Stanley M. Besen


Charles River Associates (CRA)

Stephen Kletter


Charles River Associates (CRA)

Serge Moresi


Charles River Associates (CRA)

Steven C. Salop


Georgetown University Law Center

John Woodbury


Charles River Associates (CRA)

April 19, 2012


Abstract:     
On March 20, 2011, wireless provider AT&T announced its intention to merge with T-Mobile USA, a competing wireless provider. This article reviews the economic analysis of this proposed acquisition that we carried out for Sprint and explains why the merger would have been anticompetitive. We analyze how the merger would have led to adverse unilateral, coordinated and exclusionary effects. AT&T and T-Mobile contended that their proposed merger would not adversely affect competition in wireless services because T-Mobile USA was not an effective rival, because other wireless providers could easily replace any competition that was lost as a result of the merger, and because the efficiencies from the merger would be so substantial that they would dwarf any perceived anticompetitive effects. Our analysis concludes that AT&T failed to provide convincing evidence of the lack of anticompetitive effects and failed to adequately document the claimed efficiencies in a manner consistent with the Horizontal Merger Guidelines.

Number of Pages in PDF File: 35

Keywords: mergers, antitrust, telecommunications

JEL Classification: L00, L1, L4

working papers series


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Date posted: April 25, 2012  

Suggested Citation

Besen, Stanley M. and Kletter, Stephen and Moresi, Serge and Salop, Steven C. and Woodbury, John, An Economic Analysis of the AT&T-T-Mobile USA Wireless Merger (April 19, 2012). Available at SSRN: http://ssrn.com/abstract=2045713 or http://dx.doi.org/10.2139/ssrn.2045713

Contact Information

Stanley M. Besen (Contact Author)
Charles River Associates (CRA) ( email )
1201 F. St. NW
Ste. 700
Washington, DC 20004
United States
Stephen Kletter
Charles River Associates (CRA) ( email )
1201 F. St. NW
Ste. 700
Washington, DC 20004
United States
Serge Moresi
Charles River Associates (CRA) ( email )
1201 F Street, NW
Suite 700
Washington, DC 20004
United States
(202)662-3847 (Phone)
Steven C. Salop
Georgetown University Law Center ( email )
600 New Jersey Avenue, NW
Washington, DC 20001
United States
202-662-9095 (Phone)
202-662-9497 (Fax)
John Woodbury
Charles River Associates (CRA) ( email )
1201 F. St. NW
Ste. 700
Washington, DC 20004
United States
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