"Thirteen Democratic state attorneys general sued anyway. They argued based on little evidence that the new T-Mobile would reduce wireless competition and raise prices. Judge Marrero, a Bill Clinton appointee, systematically dismantled their arguments in a 173-page clinical examination of the merger.
While Verizon and AT&T have high quality networks, he notes (with some understatement) that neither is “distinguished for innovation of beneficial customer services” and they have frequently reacted to “innovations first made by T-Mobile or Sprint.” But Sprint has been bleeding customers and cash with $37 billion in debt and would struggle to survive as an independent company.
Cable companies and Dish declined to rescue Sprint. Yet T-Mobile CEO John Legere figured that Sprint's under-utilized mid-band spectrum could complement T-Mobile’s overloaded low-band and high-band waves. Combining could provide better coverage at a lower cost to more customers.
The merger will “multiply the combined network’s capacity because of a technological innovation referred to as ‘carrier aggregation,’” the judge finds, and it has already prompted AT&T and Verizon to deploy 5G services across a broader spectrum. He adds: “New T-Mobile would be taking a very significant risk by raising prices or slowing its competitive pace because consumers in the market still generally believe that AT&T and Verizon have superior quality network.”"
Evaluating the free market by comparing it to the alternatives (We don't need more regulations, We don't need more price controls, No Socialism in the courtroom, Hey, White House, leave us all alone)
Tuesday, February 18, 2020
A judge (a Bill Clinton appointee) resists political pressure and approves the T-Mobile merger
See Sprinting to Faster 5G. WSJ editorial. Excerpt:
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