The Feds Don’t Like the AT&T-Mobile Merger

By  |  Wednesday, August 31, 2011 at 10:56 am

The Justice Department is suing to prevent AT&T’s takeover of T-Mobile’s U.S. arm. The move doesn’t kill the deal, but it does increase the chances that it won’t go through or will be approved only with further concessions on AT&T’s part.

I’m not an expert on the economics of telecommunications competition. But I keep coming back to this: The two wireless companies that have been the most aggressive on pricing and the most creative with plans have been T-Mobile and Sprint. The (relatively) small players, not the giants. Is that a coincidence? What are the chances that eliminating one of them would lead to lower prices and more options?

 
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