Question

What is the governments position and some pros and cons from the T-Mobile and Sprint Merger? Please include a source for the information.

Answer 1

The DOJ has agreed not to file a complaint to block Sprint's T-Mobile US acquisition, although it decreases the number of major mobile network providers from four to three. The DOJ persuaded the companies to sell Dish spectrum licenses, wholesale network access, and Sprint's prepaid business like the Boost Mobile and Virgin Mobile subsidiaries, in return for its approval. Boost and Virgin are both reselling links to Sprint network instead of operating their own network.

Yet many of the merger opponents aren't persuaded by the claims of the DOJ and FCC. "If the merger proceeds, it would leave the United States with only three viable national wireless service providers, including those withdrawals, Approving the merger would crush competition, raise prices and eliminate thousands of jobs.

One advantage of the merger is a smoother, more robust rollout of 5 G services. Combining the two networks means that T-Mobile coverage is Sprint coverage, and vice versa. This helps fill some holes in coverage and also provides the current T-Mobile's customers with more 5 G areas. Although 5 G rollout hasn't been especially quick for either company, the combination of mid-frequency bands from Sprint with the lower frequency spectrum from T-Mobile will not only extend coverage, but also allow the company to commit more resources to building new 5 G networks.

Consumers still get some benefits from it, but today's average customer knows that the development and creation of these operating units has resulted in more and more expensive insurance products over the years. In the short term, this merger will lead to some market rivalry, maybe for a few years, but will eventually follow the trend of the other two companies and raise their prices,

Source- Ner York Times