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DOJ Floats A Truly Stupid Idea To Salvage The Sprint, T-Mobile Merger

DOJ Floats A Truly Stupid Idea To Salvage The Sprint, T-Mobile Merger

5 years ago
Anonymous $9jpehmcKty

https://www.techdirt.com/articles/20190530/07561342300/doj-floats-truly-stupid-idea-to-salvage-sprint-t-mobile-merger.shtml

While the Pai FCC is chomping at the bit to approve T-Mobile and Sprint's competition and job killing megaunion, rumors are that DOJ staffers remain highly skeptical about the purported benefits of the deal. The sticking point remains the same: that the merger would reduce overall competition in the space by 25%, a move that historically almost always results in higher consumer prices, and less effort and innovation overall. Unions and Wall Street analysts also believe the deal will eliminate anywhere between 10,000 and 30,000 jobs as redundant positions are inevitably eliminated, something T-Mobile continues to deny.

While Sprint and T-Mobile lobbyists continue to apply as much pressure as they can in a bid for regulatory approval, there's every indication the DOJ remains highly resistant to their charms. For example, Bloomberg reports that one proposed condition being pushed by the DOJ is the mandatory creation of an entirely new fourth competitor in the wake of the deal. In short, T-mobile and Sprint would be forced to divest spectrum and other assets to create a fourth competitor to keep the market semi-healthy: