As part of its antitrust examination into the T-Mobile/Sprint merger, the US Department of Justice is looking at how the two firms combining would affect smaller wireless carriers that frequently buy network access on larger networks to resell to "pre-paid or price-conscious consumers" according to a report from Reuters.
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There are concerns, the report claims, that because Sprint and T-Mobile are more popular for smaller mobile virtual network operator or MVNO carriers looking to resell cellular service to users, a combined firm may result in higher costs for those MVNOs and their customers because of decreased competition.
The Justice Department, which is evaluating T-Mobile’s $26 billion deal to buy Sprint, has been speaking with small wireless operators that buy access to the major wireless networks at wholesale rates, and is seeking their opinions about the merger.
There's no indication yet that this part of the antitrust investigation could cause any issues for the merger, but it does illustrate how complicated these large telecom mergers can be and how many different issues they can affect.
Back in April, Sprint and T-Mobile — the third- and fourth-largest mobile carriers in the US - agreed to combine into a giant carrier with more customers than AT&T. The companies hope to complete the merger by the first half of next year, but have to get approval from antitrust regulators first.
Top Rated Comments
(View all)T-Mobile is not atnt or Verizon. My T-Mobile bill actually went down 10 dollars
How long ago was that?T-Mobile hasn't been so generous over the last year or two.
* Kickback rebate is gone ($10/line discount if the line used less than 2 GB).
* 2 lines for $100 promo that ran for over a year is gone (now costs $120, albeit with $11.99/month Netflix on Us).
* The price for T-Mobile ONE for 55+ has gone up by $10 ($60 to $70 for 2 lines).
* Most of the phone promos require adding a line or porting in a line from another carrier.
Of course prices are going to go up. Of course they’ll promise it won’t.
T-Mobile is not atnt or Verizon. My T-Mobile bill actually went down 10 dollarsT-Mobile is not atnt or Verizon. My T-Mobile bill actually went down 10 dollars
Just wait. When TMobile service level is close to Verizon and AT&T, the bill will increase. It is a common sense for T-Mobile business to recoup their investment cost.Pissing off customers isn't going to do it. Keeping prices lower than the competition will bring in more users and make more money.
Expecting prices to remain flat or decrease after a merger is pure fantasy. Existing T-Mobile and Sprint customers will most likely stay put and foot the cost increase. With no other options they can jump to a lower cost inferior company with crappier service, or pay the high prices with AT&T or Verizon.Just wait. When TMobile service level is close to Verizon and AT&T, the bill will increase. It is a common sense for T-Mobile business to recoup their investment cost.
Pissing off customers isn't going to do it. Keeping prices lower than the competition will bring in more users and make more money.