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AT&T's T-Mobile acquisition not a slam dunk at FCC

FCC merger reviews are often seen as a formality, if not a complete joke.  But in an interesting turn in AT&T'due south purchease of T-Mobile, the Federal Communications Commission said yesterday that it will be combining its review of the proposed conquering with AT&T'southward recent buy of Qualcomm's 700 MHz spectrum.  This shows that the FCC is serious well-nigh making sure that the playing field is at least somewhat level, and that AT&T actually stands a take a chance of being denied.

Critics, which include other carriers, politicians and current customers, have argued that it will pb to high prices and degraded services for consumers, and will hinder manufacture innovation.  AT&T, as you lot might imagine, disagrees.  They recently hired consulting firm M+R to conduct its ain study of the upshot, which to no surprise came back favoring the deal.  M+R researcher Allen Rosenfeld says that the FCC has it all incorrect; that they should non be looking at the outcome of a deal, but the upshot if no bargain is reached:

At the core of the flawed apples-and-oranges comparison is an implicit assumption that, in the absence of the proposed merger, T-Mobile The states'due south electric current pricing construction would continue to be bachelor to consumers. In the most-full general sense, that assumption implies a continuation of the status quo for T-Mobile USA for the foreseeable future. More specifically, it assumes that T-Mobile United states's overall customer strategy, driven by plans priced lower than AT&T's and Verizon's, could be sustained for years to come. A shut look at the industry and the competitive outlook for T-Mobile USA, however, casts serious doubt upon the validity of the assumption that T-Mobile USA, going it solitary in the absenteeism of the merger, would be able to sustain its pricing strategy and that consumers would exist better off if the merger were not approved.

In other words, T-Mobile's strategy out out-pricing the bigger carriers cannot continue on its ain.  If AT&T doesn't swoop in to the rescue, poor T-Mobile volition no longer be sustainable as-is, and customer rates volition take to increment.  How noble, AT&T, how noble.

Source: GigaOm

Source: https://www.windowscentral.com/atts-t-mobile-acquisition-not-slam-dunk-fcc

Posted by: henningliamel.blogspot.com

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