On Sunday of course, AT&T announced it’s intention to acquire T-Mobile USA. A fair amount of the commentary on the internet thus far, including my own, expresses doubt whether regulators will let the deal pass. But perhaps that is wishful thinking on the part of pundits hoping for a real fight to cover where the evil mega-corporations actually lose? Have your say, vote here:
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AT&T buying T-Mobile is Darwinian logic in action, a combination of elegant evolution in the telecommuniations industry. #2 + #4 = #1.
Not only is it logical for them to merge, it’s also in the best interest of the government & the people. If there are true fears of a monopoly, allow the companies to merge, spend $ on developing the network, and then force a split once the benefits are received.
SHOULD the deal go through, NO. WILL the deal go through, YES.
Let’s see, it will cost jobs, generate less capital investment, create duopoly conditions, lead to intermediate to long term subscriber price increases (for example, metered data usage) and to fewer subscriber package/equipment choices, stifle innovation, and on and on the list can go.
The DOJ’s antitrust department has been asleep at the wheel since the time they approved NYNEX-Bell Atlantic merger and the FCC’s decision making apparatus flows in the direction of the stream of money, a lovely hue of AT&T blue. In short, this merger is unlikely to wake them up.
Outside of a few worthless short-term conditions, perhaps a divestiture in some meaningless cities or a two year promise not to trample on Leap or others, nothing will come of this.
That won’t stop regulators, politicians and lawyers from putting on a great show complete with hearings that showcase powerful nobel winning economists, grandstanding politicians thundering on about the public interest or free markets and other experts in a variety of fields inside and outside the telecommunications services and equipment industries.
When it’s all over, everyone, including the losers, who won’t want to spook their shareholders, investors and subscribers, will declare victory. Kumbaya