ICLE Comments in Opposition to Petition to Deny T-Mobile-Sprint Merger

Abstract

ICLE’s comments argue that the petitions to deny fail to provide any compelling reason to adopt a presumption against this merger. To the contrary, there are good reasons to think that this transaction will benefit consumers and the economy.

As ICLE scholars discuss in these comments, increased concentration is not necessarily good or bad in itself — it depends on the circumstances. Increases in market concentration in the US mobile industry have historically been accompanied by dramatic increases in quality and reductions in price. And there are compelling reasons to believe that the merger of T-Mobile and Sprint will continue this trend.

Indeed, the potential benefits of the deal — including wider access to, and more timely deployment of, high-speed wireless data at lower cost, as well as a host of other innovations—are considerable. In order to ensure that such consumer benefits can be realized, it is crucial that the proposed merger not be thwarted by regulators inappropriately focused on short-term, static effects.

Keywords: Antitrust, FCC, Mergers